Question

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?

Homework Answers

Answer #1

Table showing Calculation of Taxable Income for 2017

Particulars Amount
Total Salaries 84600
Add: Taxable Interest Income 3900
Adjusted Gross Income 88500
Less: Itemized Deduction (12800)
Less: Personal Exemption (8100)
Taxable Income 67600

b.

The deduction for Personal Exemption for the year 2017 is $8100.

For its calculation, we needed the personal exemption per person, which is $4050 as per the official website of IRS. Further, we know that Frank and Joyce do not have any dependents, and are filing returns jointly. For the same reason, the personal exemption per person has to be multiplied by 2. So, we have the following calculations:

Personal Exemption Per Person X Dependents(or self and spouse) = Personal Exemption for the year

$4050 X 2 = $8100

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to...
Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $88,750 and they had interest income of $2,660. Diego and Dolores' deductions for adjusted gross income amounted to $5,170; their itemized deductions were $8,425; they claimed two exemptions on their return; and, they filed a joint return. Table for the standard deduction Filing Status 2017 Standard Deduction Single $ 6,350 Married, filing jointly 12,700 Married, filing separately 6,350 Head of household 9,350 Qualifying widow(er)...
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
Steve and Sue are married with three dependent children. Their 2017 joint income tax return shows...
Steve and Sue are married with three dependent children. Their 2017 joint income tax return shows $389,000 of AGI and $60,000 of itemized deductions made up of $30,000 of state income taxes and $30,000 of charitable contributions. Calculate the following amounts: In your computations, round any percentage up the nearest whole percent. If required, round your answers to the nearest dollar. a. Allowable itemized or standard deduction amount $ b. Allowable exemptions deduction amount $ c. Taxable income $
As a tax return preparer for The Fernando Rodriguez Tax & Accounting Service, you have been...
As a tax return preparer for The Fernando Rodriguez Tax & Accounting Service, you have been asked to calculate the missing information for some of the firm's tax clients. Use the standard deductions shown below and the itemized deduction amount shown below to determine the value of the deduction to claim. If adjusted gross income is less than or equal to $152,525 multiply the number of exemptions by $3,950. Name Filing Status (Exemptions) Income Adjustments to Income Adjusted Gross Income...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Arthur and Cora are married...
Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5) Arthur and Cora are married and have 2 dependent children. They have a gross income of $95,000. Their allowable deductions for adjusted gross income total $4,000, and they have total allowable itemized deductions of $14,250. The standard deduction for 2017 is $12,700 and the personal exemption is $4,050. Refer to the Tax Rate Schedules to answer the following questions. Round intermediate computations and final answer to the nearest dollar....
Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income...
Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $40,600, no tax-exempt interest, and $14,210 of Social Security benefits. As a result, $__________ of the Social Security benefits are taxable. **Please show all work and how you got the answer**
a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross...
a. Erwin and Eleanor are married and file a joint tax return. They have adjusted gross income of $43,000, no tax-exempt interest, and $15,050 of Social Security benefits. As a result, $_____ of the Social Security benefits are taxable. b. Assume Erwin and Eleanor have adjusted gross income of $17,400, no tax-exempt interest, and $19,140 of Social Security benefits. As a result, $______ of the Social Security benefits are taxable. c. Assume Erwin and Eleanor have adjusted gross income of...
Harry and Wilma are married and file a joint income tax return. On their tax return,...
Harry and Wilma are married and file a joint income tax return. On their tax return, they report $44,000 of adjusted gross income ($20,000 salary earned by Harry and $24,000 salary earned by Wilma) and claim two exemptions for their dependent children. During the year, they pay the following amounts to care for their 4-year old son and 6-year old daughter while theywork. ABC Day Care Center $5,200 Mrs. Mason (Harry’s mother) 1,000 Harry and Wilma may claim a credit...
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
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