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Rita and Carl Cambridge are both over age 65 and use the filing status married filing...

Rita and Carl Cambridge are both over age 65 and use the filing status married filing jointly. Their AGI is $211,008. Their total allowable itemized deductions are $22,908. How much should they deduct on their return for the standard deduction or itemized deductions?

a) $24,000
b) $22,908
c) $26,600
d) $0, AGI is too high to itemize.

(2018 tax year. Please explain how you came about your answer.)

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Homework Answers

Answer #1

Ans is (c) $ 26,600

For 2018, Standard deduction for filing status married filing jointly is $ 24,000 and $ 12,000 for single filers.

An additional deduction is allowed to filers above the age of 65.Additional amount for filing status married filing jointly is $ 26,00

So, Total standard deduction will be $ 24,000+$ 2,600 = $26,600

Allowable itemized deduction are $22,908.

As standard deduction is more than the itemized deduction, Rita & Carl should deduct $26,600 as their standard deduction.

Please upvote if you find the ans helpful.Thanks

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