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Discussion) Taxable Income
Daze works as a sales representative and travels extensively for his employer’s business. This year Daze was paid $98,000 in salary and made the following expenditures:
Federal income taxes withheld
10,000
State income taxes withheld
2,000
Medical expenses
1,000
Employee business expenses (unreimbursed portion)
1,000
Charitable contributions
500
Investment counseling fees
800
Will preparation fee
500
Daze also made a number of trips to Connecticut for gambling. This year Daze won $2,000 after spending $14,500. Calculate Daze’s Taxable Income if he files jointly with his spouse with no income. 
 

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