Jeff and Marion are married with 3 dependents. Their adjusted gross income in 20
ID: 2585194 • Letter: J
Question
Jeff and Marion are married with 3 dependents. Their adjusted gross income in 2017 is $338,300. Their itemized deductions total $34,600, including $4,900 in investment interest.
Round any division to the nearest whole number. Use the rounded value for subsequent computations.
Refer Table 8-3 to answer the following questions.
a. Jeff and Marion's 2017 taxable income is $.
b. Assuming that Jeff and Marion's adjusted gross income is $483,800 and their itemized deductions remain the same, their 2017 taxable income will be $.
Explanation / Answer
A)
Adjusted gross income: $ 338,300
(-) itemized deductions: -33,790 (calcuated as per Itemized deduction worksheet for line 29 of Schedule A)
(-) Exemption for dependents -9,526 (calculated as per Deduction for Exemptions Worksheet—Line 42, Form-1040)
Taxable income: $ 294,984
B)
Adjusted gross income: $ 483,800
(-) itemized deductions: -33,790 (calcuated as per Itemized deduction worksheet for line 29 of Schedule A)
(-) Exemption for dependents 0 (calculated as per Deduction for Exemptions Worksheet—Line 42, Form-1040)
Taxable income: $ 450,010
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