tax accounting · tax formula
Today’s Expert Challenge
Archibald Fitzgerald is a single petroleum engineer based in Houston, Texas, who earned $216,900 in wages from a regional energy firm and an additional $22,300 in net profit from a small consulting practice he operates independently. He holds a diversified brokerage account generating $7,750 in interest, $4,350 in ordinary dividends (of which $3,650 are qualified), and $1,500 in long-term capital gains from stock sales. He paid $4,700 in deductible student loan interest above the line and has significant itemized deductions consisting of $18,200 in mortgage interest, $7,600 in state and local taxes (SALT, capped at $10,000), and $5,600 in charitable cash contributions.
Filing Status
SINGLE
Wages
$216,900
Interest Income
$7,750
Ordinary Dividends
$4,350
Qualified Dividends
$3,650
Business Income
$22,300
Capital Gain
$1,500
Above-Line Deductions
$4,700
Itemized Deductions
$31,400
Tax Withheld
$36,220
Tax Credits
$0
No account needed — this check is free for everyone.
Need a hint?
- Remember to apply the $10,000 SALT cap when evaluating itemized deductions, and compare total itemized deductions to the 2024 standard deduction for single filers ($14,600) to determine which is more beneficial.
- The qualified business income (QBI) deduction under Section 199A may be available for the $22,300 of Schedule C consulting income, subject to the taxable income limitation applicable to single filers at this income level.
2026-10-23