Question

Paul is 66 years old and Tina is 62 years old. In 2019, they file a joint return. They support their 22-year-old son, Jed, who is a full-time student. He earns $4,000.00 per year as a waiter at a restaurant.

Wages............................................................... $ 170,000.00

Interest from savings.......................................... $12,000.00

Interest on NYS qualified bonds........................... $7,000.00

Inheritance from Tina’s Aunt Lucy....................... $6,000.00

Child support from Tina’s ex-husband Eric........ $10,000.00

Prize from contest at church.................................. $1,000.00

Paul and Tina own a house in Whitestone. The costs associated with the house were as follows:

Mortgage interest                               $7,000.00

    (Please note: The amount of the indebtedness is under $750,000.00.)

Real estate taxes                                 $8,000.00

They paid hospital bills of $7,000.00 and doctor’s bills of $6,000.00. Their medical insurance company reimbursed them in the amount of $3,000.00 for the doctor’s bills. They had prescriptions in the amount of $500.00 and a yearly vitamin expense of $200.00.

Their charitable contributions included:

$2,000.00 paid to St. Mary’s Church

$   500.00 paid to Mr. and Mrs. Elm (neighbors) whose house was damaged in a flood

1. What is Paul and Tina’s gross income?
2. What is Paul’s and Tina’s adjusted gross income ?
3. What is Paul and Tina’s standard deduction without regard to their itemized deductions?
4. What is Paul and Tina’s net itemized deduction ?
5. How much of the charitable donations are deductible?
6. What is Paul and Tina’s taxable income?
7. What is Paul and Tina’s tax liability?

Answer 1

Computaion of Gross Total Income of Mr.Paul and Ms.Tina They file a joint return
PARTICULARS OF INCOME	AMOUNT $ )	AMOUNT $ )
WAGES	170000
INTEREST FROM SAVING	12000
INTEREST FROM NEW YOUR STATE QUALIFIED BOND	7000
INHERITANCE FROM TINA'S AUNT LUCY	6000
CHILD SUPPORT FRO TINA'S EX HUSBAND	1000
PRICE FROM CONTEST AT CHURCH	1000
ADJUSTED GROSS INCOME		197000
LESS : DEDUCTION
Educator expenses (a deduction for certain expenses paid by teachers)
Certain job expenses of performing artists
Unreimbursed job expenses of state and local officials paid on a fee basis
Health savings account deduction
Hospital bill	7000
Doctor Bill ( 50 %)	3000
PRESCRIP AND VITAMIN	700	10700
GROS TOTAL INCOME		186300
LESS : CONTRIBUTION TO CHARITY AND DONATION
CHARITY	1000
CHARITY SHO HOUSE WAS DAMAG	250	1250
( 50 % OF ACTUAL CONTRIBUTION AS PER U/S 170
GROSS TOTAL INCOME		185050
LESS : STANDARD DEDUCTION		24400
( JOINTLY FILED OF $ 12200 X 2 )
TAXABLE INCOME		160650
TAX OF $ 160650		31147
TAX RATE FOR THE YEAR 2019 :
10 %        OF                            $   0 -9700	970
12%         OF                           $    9701 - 39475	3573
22%     OF                           $    39476 - 160650	26658
1. What is Paul and Tina's adjusted gross income in 2019?		185050
2. What is Paul and Tina's standard deduction for 2019 without regard to their itemized deductions?		24400
3. What is Paul and Tina's net itemized deduction? ( $ 24400 +1250)		25650
4. What is Paul and Tina's tax liability? 5. What is Paul and Tina’s gross income in 2019 6. How much of the charitable donations are deductible 7. What is Paul and Tina’s taxable income ?		31201 186300 1250 160650