Ask Question
21 February, 09:19

Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2019. Their salaries for the year total $84,800 and they have taxable interest income of $3,900. They have no deductions for adjusted gross income. Their itemized deductions are $24,700. Frank and Joyce do not have any dependents.

0
Answers (1)
  1. 21 February, 10:52
    0
    The question is not complete.

    Here is the complete part:

    Table for the standard deduction

    Filing Status 2018 Standard Deduction

    Single $ 12,000

    Married, filing jointly $24,000

    Married, filing separately $12,000

    Head of household $18,000

    Qualifying widow (er) $24,000

    If an amount is zero, enter "0".

    a. What is the amount of their adjusted gross income?

    $

    b. What is their deduction for personal exemptions?

    $

    c. What is the amount of their taxable income?

    $

    Here are the answers:

    a. Adjusted Gross Income = $88,700

    b. Personal exemptions = $0

    c. Taxable Income = $64,000

    Explanation:

    a. Adjusted Gross Income is calculated by adding income from various sources and subtracting any specific deductions.

    For Frank and Joyce, the adjusted gross income is:

    $84,800 + $3,900 - $0 (no deductions for adjusted gross income) = $88,700.

    b. Personal exemptions equals is $0 because it has been phased out in 2017.

    c. The taxable income is derived by deducting standard deduction or itemized deductions (whichever is higher) from adjusted gross income.

    Taxable income = Adjusted gross income - deductions (standard or item-whichever is higher).

    The standard deductions of $24,000 for married, filling jointly is lower than their itemized deductions, so the latter will be used.

    Hence, the taxable income = $88,700 - $24,700

    Taxable income = $64,000
Know the Answer?