Question

Mr & Mrs Liddy, ages 39 & 41, file a joint return and have no dependents...

Mr & Mrs Liddy, ages 39 & 41, file a joint return and have no dependents for the year. Here is their relevant information:

Salaries: $47,000

Taxable interest income: $5,000

Above-the-line deduction: $1,800

Itemized deductions: $16,250

Compute their AGI and taxable income.

A) AGI $50,200; taxable income $25,800

B) AGI $52,000; taxable income $35,750

C) AGI $52,000; taxable income $33,550

D) AGI $50,200; taxable income $9,950

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Answer :- A) AGI $50,200; taxable income $25,800

Salaries $47,000
Add Taxable Interest income $5,000
Less Above the line deduction $1,800
AGI $50,200
AGI $50,200
Less Standard deductionf or couple filing retrun jointly $24,400
Taxable income $25,800

- Itemized and standard deduction can not be claimed together. SInce IRS allows standard deduction of $24,400 to couple filling return jointly, which is more than itemized deduction of $16,250 in given question. $24,400 should be clamied as deduction

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Mr & Mrs Jones, ages 39 & 41, file a joint return and have no dependents...
Mr & Mrs Jones, ages 39 & 41, file a joint return and have no dependents for the year. Here is their relevant information: Salaries: $47,000 Taxable interest income: $5,000 Above-the-line deduction: $1,800 Itemized deductions: $16,250 Compute their AGI and taxable income. A) AGI $50,200; taxable income $26,200 B) AGI $52,000; taxable income $31,400 C) AGI $52,000; taxable income $39,000 D) AGI $50,200; taxable income $39,000
Mr. and Mrs. Keppner file a joint income tax return. Assume the taxable year is 2020....
Mr. and Mrs. Keppner file a joint income tax return. Assume the taxable year is 2020. Required: Compute their standard deduction assuming that Mr. Keppner is age 68, and Mrs. Keppner is age 60. Compute their standard deduction assuming that Mr. Keppner is age 70, and Mrs. Keppner is age 68. Compute their standard deduction assuming that Mr. Keppner is age 70, and Mrs. Keppner is age 68. Mrs. Keppner is legally blind.
Frank, age 35, and Joyce, age 34, are married and file a joint income tax return...
Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2017. Their salaries for the year total $84,600 and they have taxable interest income of $3,900. They have no deductions for adjusted gross income. Their itemized deductions are $12,800. Frank and Joyce do not have any dependents. b. What is their deduction for personal exemptions?
Mr. and Mrs. Davos file a joint tax return. Each spouse contributed $3,800 to a traditional...
Mr. and Mrs. Davos file a joint tax return. Each spouse contributed $3,800 to a traditional IRA. In each of the following cases, compute the total deduction for these contributions. The AGI in each case is before any deduction. a.) Neither spouse is an active participant in a qualified retirement plan, and their AGI is $123,400. b.) Mr. Davos is an active participant, but Mrs. Davos is not. Their AGI is $123,400. c.) Both spouses are active participants, and their...
Mr. Mason’s salary was $397,000, and Mrs. Mason’s salary was $344,000. They had no other income...
Mr. Mason’s salary was $397,000, and Mrs. Mason’s salary was $344,000. They had no other income items, no above-the-line or itemized deductions, and no dependents. Assume the taxable year is 2019. Use Individual Tax Rate Schedules and Standard Deduction Table. Compute their tax on a joint return. Compute their combined tax if they file separate returns (married filing separately). Compute their marriage penalty (excess of tax on a joint return over combined tax on two returns filed as single taxpayers).
Mr. and Mrs. Hunt, ages 38 and 33, have the following allowable itemized deductions this year....
Mr. and Mrs. Hunt, ages 38 and 33, have the following allowable itemized deductions this year. 1. Medical expenses $3,200 2. State and local taxes $7,000 3. Casualty loss $4,000 4. Charitable contributions $3,500 5. Miscellaneous itemized deductions $225 Determine the effect on the amount of each deduction if the Hunts engage in a transaction generating $10,000 additional AGI this year.
Compute the taxable income for 2019 in each of the following independent situations. Click here to...
Compute the taxable income for 2019 in each of the following independent situations. Click here to access the standard deduction table to use if required. a. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $27,000. AGI $125,000 Less: (itemized deduction/standard deduction) Taxable income $ b. Sybil, age 40, is single and supports her dependent parents, who live with...
Compute 2018 taxable income in each of the following independent situations. Click here to access the...
Compute 2018 taxable income in each of the following independent situations. Click here to access the standard deduction table to use if required. a. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $27,000. AGI $125,000 Less: itemized deductions ??? Taxable income??? b. Sybil, age 40, is single and supports her dependent parents, who live with her. Sybil also...
Mr. and Mrs. S have the following income items: Mr. S’s Schedule C net profit $...
Mr. and Mrs. S have the following income items: Mr. S’s Schedule C net profit $ 91,320 Mrs. S’s Schedule C net loss (7,480 ) Mrs. S’s taxable pension 12,300 Mr. S’s self-employment tax was $12,903. The couple had $13,050 itemized deductions. They provide 100 percent of the financial support of Mr. S’s 82-year-old mother, who resides in their home. Compute the couple’s income tax on a joint return. Assume the taxable year is 2017. (Round your intermediate calculations and...
Donna and Brian are married and file a joint return and together have an Adjusted Gross...
Donna and Brian are married and file a joint return and together have an Adjusted Gross Income of $180,000. Married filing jointly standard deduction is $24,800 for 2020. They own their home. They have the following itemized deductions: Should Donna and Brian itemize their deductions or use the standard deduction? Medical Bills and Health Insurance $26,000 Property tax $1,250 Mortgage Interest expense                                     $5,500 State sales taxes   $7,000 Miscellaneous deductions                                $3,600
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT