My grandma(66)is single &retired.She will not be itemizing this yr.medical expenses were paid by me.What's her taxable income?Taxable pension$10000 dividends$5000 Interest bank acc$2300 gambling winning$5000 ORmunicipal bonds $7250 gambling loss$1200
We need to know her SSI.
The adjusted gross income will depend on what type of interest on the Municipal Bonds. Assuming that None of the interest from the Municipal Bonds is $7,250 is taxable then her adjusted gross income will be $22,300 not including any potential Social Security Payments she may have received that a portion of may be taxable based upon her AGI + Muni Interest. The gambling losses are only deductable as an itemized deduction on Schedule A and based upon the info you provided she will Not have enough to itemize with therefore they will not be deductable
Her reportable income does require her to file a tax return even if she does not owe any tax. You need to enter these numbers on a tax form. If she also has Social Security, you will have to do the worksheet to determine if any of it is taxable. Also, she may have enough deductions to itemize if you go down the entire list: property tax, state tax, cash and non-cash charitable deductions, and her gambling losses. If you need help doing this, get that help.
IMHO it's highly unlikely that anything commonly described as a muni bond would be Federally taxable for regular tax, since the whole point of muni bonds is that they aren't Federally taxable.
They are included in the calculation of how much Social Security is taxable.
Since you are apparently not a tax professional, please ask your questions in the TT forum.
As Phoebe noted I stand corrected and should have not included the Municipal Bond Interest in my response above and have corrected it
Candy - I'm just curious as to what you are up to. Yesterday you asked "what's his AGI" and today the question is "what's Grandma's taxable income". What test are we taking for you?
Thank you, IRMN.
And next, on "What's... His... AGI?" the question that Bob must answer before he gets all his points and is allowed to prepare income tax returns for a living, is...?
Hmm. Another test question.
