Jason and Mary are married taxpayers in 2019. They are both under age 65 and in good health. For 2019 they have a total of $41,000 in wages and $700 in interest income. Jason and Mary's deductions for adjusted gross income amount to $5,000 and their itemized deductions equal $18,700. They have two children, ages 32 and 28, that are married and provide support for themselves.

Required:
a. What is the amount of Jason and Mary's adjusted gross income?
b. What is the amount of their itemized deductions or standard deduction?
c. What is their 2016 taxable income?

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Respuesta :

Parrain Parrain · Answer 1 · 2020-09-16T04:17:26+02:00

Answer:

a. Adjusted Gross income is calculated as;

= Wages + Interest - Deduction

= 41,000 + 700 - 5,000

= $36,700

b. The couple will pick their Standard deduction in 2019 because its more than the itemized deduction.

Standard deduction for couples in 2019 = $24,400

c. I assume you mean their 2019 taxable income which is;

= Adjusted Gross income - Standard deduction

= 36,700 - 24,400

= $12,300

Note; As of 2018 there are no more personal deductions.

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