Emil and Judy Ryan are married and file a joint return. They have no children. 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, who earned $800 from baby-sitting jobs and received $1,900 in social security benefits during 2015. Cora lives alone in her own apartment. Emil earned a salary of $60,000 in 2015 from his job at Korma Corp., where Emil is covered by his employer's pension plan. Judy, who worked part time in 2015 and earned $1,000, is not covered by an employer's pension plan. Other items received jointly by Emil and Judy in 2015 were as follows:

Life insurance proceeds refund 100

Interest on life insurance policy's accumulated dividends 300

Dividends on stock of a Swiss corporation 500

Dividend on life insurance policy 200

Explanation / Answer

Particulars Emil Judy Joint Income from Salary 60000 1000 61000 Other Income life insurance proceed 100 Int on life insurance dividends 300 Dividend on stock 500 Dividend on life insurance 200 1100 Gross Total Income 62100 Less Personal deduction For themselves 4000 For Cora 4000 8000 Standard Deduction 12600 Taxable Income 41500

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