In 2022 Juan (age 29) filed as single. He had Wages of \( \$ 39,000 \) and dividend income of \( \$ 2,000 \). Itemized deductions of \( \$ 3,000 \). Calculate his taxable income:

To calculate Juan's taxable income, we will follow these steps: 1. **Calculate Total Income**: This includes wages and dividend income. 2. **Subtract Itemized Deductions**: From the total income, we will subtract the itemized deductions to find the taxable income. ### Step 1: Calculate Total Income Juan's total income consists of his wages and dividend income: \[ \text{Total Income} = \text{Wages} + \text{Dividend Income} \] Substituting the values: \[ \text{Total Income} = 39000 + 2000 \] ### Step 2: Subtract Itemized Deductions Now, we will subtract the itemized deductions from the total income: \[ \text{Taxable Income} = \text{Total Income} - \text{Itemized Deductions} \] Substituting the values: \[ \text{Taxable Income} = \text{Total Income} - 3000 \] Now, let's perform the calculations. 1. Calculate Total Income: \[ \text{Total Income} = 39000 + 2000 = 41000 \] 2. Calculate Taxable Income: \[ \text{Taxable Income} = 41000 - 3000 = 38000 \] ### Final Answer Juan's taxable income is \( \$ 38,000 \).