Paul and tina are married and file a joint return. paul is 45 years old and...

Paul and tina are married and file a joint return. paul is 45 years old and tina is 43. They had itemized deductions totalling 27,000. What is the amount of their gross income

Pauls salary 80,000

tina salary 20,000

interest income 3,000

dividend income 750

interest from qualified nys bonds 900

an inheritance from pauls uncle 20,000

pauls ex wife cindys alimony 10,000

what is their taxable income

what is their tax liability

Solutions

Expert Solution

Filing Status	Married Filing Jointly
INCOME :
Salary	80,000
Spouse Salary	20,000
Interest Income	3,000
Interest from qualified nys bonds	900
dividend income	750
Alimony received	10,000
GROSS INCOME	114,650
LESS : DEDUCTIONS
dividend income	(750)
Alimony received	(10,000)
ADJUSTED GROSS INCOME	103,900
LESS : STANDARD OR ITEMIZED DEDUCTIONS	(24,400)
TAXABLE INCOME	79,500
TOTAL TAX BEFORE CREDIT	9,213

Notes:-

Dividend income is considered as qualified dividend, are taxed at Capital gain rates. Up to $9,525 capital gain rate is 0%.
Alimony received :a divorce or separation agreement executed after December 31st, 2018 is not considered income by the spouse receiving the payment. An amount should be entered only if the agreement was executed on or before December 31st, 2018.
STANDARD OR ITEMIZED DEDUCTIONS : The standard deduction reduces your taxable income. In 2019 the standard deduction is $12,200 for single filers and married filers filing separately, $24,400 for married filers filing jointly.
Federal Income tax rate 2019 :-

Federal Income tax rate 2019
Tax Rate	Married filing jointly
10%	$0 - $19400
12%	$19400 - $78950
22%	$78950 - $168400

ekkarill92 answered 1 year ago

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