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Jessica and Jason are married, file a joint return, and have 4 dependent children. Assume a...

Jessica and Jason are married, file a joint return, and have 4 dependent children. Assume a taxpayer is allowed a personal exemption deduction of $4,050 (in 2016 and 2017) for himself or herself. Calculate their 2017 personal and dependency deductions for each of the following independent situations:

a. Their AGI is $275,000.

$

b. Their AGI is $375,000.

$

c. Their AGI is $475,000.

$

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Answer #1

A.

4050 is personal exemption allowed per dependent qualifying child and when they file joint return they can claim 4050 per perosn additionally.

Beginning of phase out = 313800

Total exemption = 4050*6 = 24300

B.

4050 is personal exemption allowed per dependent qualifying child and when they file joint return they can claim 4050 per perosn additionally.

Beginning of phase out = 313800

Phase Out % = (375000-313800)/2500*2% = 50%Approx

Total Exemption = 24300 - 25*2%*24300 = 12150

C.

Maximum Phaseout Limit = 436300

So, no deduction allowed.

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