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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?

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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

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