Question

Chandler and Monica file their taxes Married Filing Jointly

Each earns $52,000 after employee deductions (Box 1 income is $52,000 each)

They earn bank interest of $1,000 in their joint account.

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Each contributes $6,000 to a Roth IRA

Monica adds $2,000 to her HSA account each year.  Chandler does not have an HSA option.   The maximum allowed Monica can contribute is $7,000.    

Total of itemized deductions is $18,000.  Their standard deduction is $24,400.

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They have no income adjustments

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1. What is their Adjusted Gross Income?
   
2. What is their Taxable Income?
   
3. What are some things they could they do to reduce their taxes for this year?

Answer 1

Chandler and Monica file their taxes Married Filing Jointly

Each earns $52,000 after employee deductions (Box 1 income is $52,000 each)