Question

8) Brandon and Taylor are married and have two dependent children. Their 2019 tax and other related information is as follows:

Total salaries	$160,000
Bank account interest income	3,500
Municipal bond interest income	1,500
Value of employer provided medical insurance	12,500
Employer paid premiums for $50,000 of group term life insurance	5,500
Dividend income from ABC stock	2,000
Loan from Randy's parents	5,000
	15,000
	18,000
Total itemized deductions	27,000

Compute Brandon and Taylor's taxable income. (Show all calculations.)

Answer 1

Calculation of Taxable Income

Particulars	Amount
Salaries	$                   160,000
Bank account interest income	$                        3,500
Municipal bond interest income	$                               -
Value of employer provided medical insurance	$                               -
Employer paid premiums for $50,000 of group term life insurance	$                               -
Dividend Incom from ABC Stock	$                        5,000
Adjusted Gross Income	$                   168,500
Less Itemized Deduction	$                   (27,000)
Taxable Income	$                   141,500

Brandon and Taylor's taxable income = $141,500

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