Question
Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has
Bonnie and Jake (ages 35 and 36, respectively) are married with no dependents and live in Montana (not a community property state). Because Jake has large medical expenses, they seek your advice about filing separately to save taxes. Their income and expenses for 2018 are as follows:
Bonnie's salary $42,500
Jake's salary 26,000
Interest income (joint) 1,500
Rental loss from actively managed rental property (23,000)
Jake's unreimbursed medical expenses 8,500
All other itemized deductions:*
Bonnie 19,000
Jake 6,400
*None subject to limitations
Determine whether Bonnie and Jake should file jointly or separately for 2018.If required, round your answers to the nearest dollar.
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