Emil and Judy Ryan are married and file a joint return. They have no children. E
ID: 2415566 • Letter: E
Question
Emil and Judy Ryan are married and file a joint return. They have no children. Emil is 68 and Judy is 60. They contribute over half of the support for Judy’s mother, Cora (age 85). Cora earned $1,970 in 2015 and received $2,900 in social security. Cora lives in an apartment in the Ryan’s basement and does not pay any of her own expenses..
Emil earned a salary of $72,400 in 2015 from his job at Korma Corp. Judy worked part-time and earned $19,520. They also received the following:
Life insurance proceeds $70,000
Interest on State of Virginia bonds $320
Dividends on stock of a Swiss corporation $920
Interest on savings accounts $93
If the Ryan’s have itemized deductions of $12,560, what is their taxable income for 2015.
Explanation / Answer
Taxable income for 2015 is -
Emil Salary -$72,400
Judy Salary-$19,520
Interest on State of Virginia bonds-$320
Dividends on stock of a Swiss corporation-$920
Interest on savings accounts $93
(Itemized deductions)=$12,560
Life insurance EXP. is not a part of income. Also, he can claim $3,800 fo dependent.
Taxable Income-$76893
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