Mike has an adjusted gross income of $85,643. He claims two exemptions and can deduct $896 for state income tax, $2,145 for charitable donations, and $3,473 for medical expenses. If the standard deduction is $5,700 and exemptions are each worth $3,650, what is Mike’s total taxable income?

Mike’s itemized deductions total $6,514: $896 + $2,145 + $3,473. That is more than the $5,700 standard deduction, so use the itemized amount. Subtract those deductions and his two exemptions ($2 × $3,650 = $7,300) from his adjusted gross income: $85,643 − $6,514 − $7,300 = $71,829. The correct choice is C, $71,829.

AI-written and checked against the verified answer.