Alicia (age 27) is a single, full-time college student. she earns $13,200 from a part-time job and has taxable interest income of $1,450. her itemized deductions are $845. what is her taxable income

Alicia's taxable income for 2015,

Formula to calculate Alicia’s taxable income

Total Income = Part time earning from Job + taxable interest income – standard deduction or itemized deduction whichever is higher  

                        = $13200+$1450-6-$6300

                        = 14650

Standard deduction = $6300

Taxable Income = $8,350

forbearance of student loan payments. under forbearance, your loan payments are postponed (or reduced) but interest continues to accrue during the period of forbearance. if you don't pay the interest during that period, the interest may be “capitalized,” which means it is added to your principal balance.