LO 5.7 26. Frank, age 35, and Joyce, age 34, are married and file a joint income tax return for 2009. Their salaries for the year total $290,000 and they have taxable interest income of $40,000. They have no deductions for adjusted gross income. Their itemized deductions consist of $4,000 in state income taxes, $5,000 of charitable contributions, and

$15,000 of mortgage interest. Frank and Joyce do not have any dependents.

What is their deduction for personal exemptions? Please use the following worksheet for your calculations.

Transcribed Image Text:

Deduction for Exemptions Worksheet-Line 42 1. 3. 4. 5. 6 7. Keep for Your Records Is the amount on Form 1040, line 38. more than the amount shown on line 4 below for your filing status? No. me Multiply $3.650 by the total number of exemptions claimed on Form 1040, line 6d, and enter the result on Form 1040, line 12. Yes. Continue 7 Multiply $1.650 by the total number of exemptions claimed on Form 1014) line fid... Enter the amount from Fur 1080), line 38 rait as of Enter the amount shown below for your filing status Single-S166,800 Married filing jointly or qualifying widow(er) Married filing separately $125,100 Head of household-8208.500 Subtract line Line 3 10/2009 Is line 5 more than $122.500 (S61.250 il married filing separately" Yes. Multiply $2,413 by the total number of exemptions claimed in Form 1040, line 6d. buter the result here and on Form 1040 Lac 42. Do not complete the rest of this worksheet. No. Divide line 5 by $2,500 ($1.250 if married fi ing separately). If the result is noe a whole ommber, increase it to the next higher whole number (for example, increase 0.004 to 1) Multiply line 6 hy 2% (02) and enter the result as a decimal 8. Multiply line 2 hy line? 7. 8. 9. Divide line by 1.0 9. 10. Deduction for exemptions. Subtract line 9 from line 2. Enter the result here and on Form 1040, Line 42 10.