Question

Alana and Jose are married and claim 2 exemptions. Last year Alana earned $32,400 and Jose earned $28,600 in wages. Additional tax information for the year is as follows: Interest earned: $2,800; alimony paid: $5,900; contributions to IRA retirement fund: $2,300; state and local income taxes paid: $6,200; contributions to charity: $2,700. Find the taxable income if they file a joint return.

(ps. Standard Deduction in 2018 for MFJ or QW with dependent is $24,000; for S or MFS is $12,000; for HoH is $18,000)

Answer 1

Particulars	Amount	Amount
Gross income:
Salary	$          61,000
Interest	$            2,800
Gross income		$          63,800
For AGI deductions 5900+2300		$            8,200
Adjusted gross income		$          55,600
Less:
Standard deduction	$          24,000
Itemized deduction 6200+2700	$            8,900
Higher of the two		$          24,000
Taxable income		$          31,600

Taxable income is $31,600

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