Question
1. Donald (age 69) and Daisy (age 67) are married taxpayers. They have two children Huey (14 and a sophomore in high school) and Dewey
1. Donald (age 69) and Daisy (age 67) are married taxpayers. They have two children Huey (14 and a sophomore in high school) and Dewey (21 who graduated from Wayne State in May 2016). During 2016 Huey earned $4,090 from his part-time summer job as a lifeguard and Dewey earned $13,500 from his management job that he started in November 2016. Both Huey and Dewey live at home with their parents. Daisy's parents, Chip and Dale, (both age 89 and Dale is blind) also live with them. The parents are completely supported by Donald and Daisy. Donald and Daisy's total gross income for 2016 is $158,000. Their itemized deductions are comprised of the following:
Charitable Contributions | 4,000 |
---|---|
Mortgage Interest | 3,800 |
Real Estate Taxes | 5,000 |
Filing Status | |
---|---|
Itemized Deductions or Standard Deduction Dollar Amount | |
Number of Exemptions allowed |
2. Pooh, who is 72 years old and single, is claimed as a dependent on his daughter's tax return. During 2016, Pooh received $700 in interest in a savings account and $2,800 of social security benefits. Pooh also earned $2,250 from a part-time job.
Filing status for Pooh | |
---|---|
Standard Deduction for Pooh Dolalr amount | |
Number of Exemptions allowed for Pooh |
Assume that Pooh's adjusted gross income was $3,100.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started