Question

Max and Jo are married, filing jointly, and earned wages of $96,400 in 2019. They also earned $822 in interest on investments and contributed $11,320 to a tax-deferred retirement plan. They claimed tax-deferred educator expenses of $185 and will use their 2019 standard deduction of $24,400 rather than itemizing their deductions. Finally, they claim $2,000 child tax credits for each of their two children.

Calculate Max and Jo's gross income.

Calculate Max and Jo's adjusted gross income.

Calculate Max and Jo's taxable income.

Answer 1

Particulars	Amount ($)
Annual Salary (a)	96400
Interest on Investments(b)	822
Gross Income(a) + (b)	97222
Tax Deferred educator Expenses (c)	(185)
Adjusted Gross Income (a) + (b) - (c)	97037
(-) Deductions: [(i) + (ii) + (iii)] i. Contributions to Tax deferred Retirement plan - $11320 (Allowed upto $19000) ii.Standard Deduction -$24400 iii.Child Tax Credits ($2000* 2) -$4000   _________	(39720)
Total Taxable Income	57317