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.

Click here to access the tax rate schedule.

If required, round your answers to the nearest dollar.

Bonnie Jake Joint 43,250V$ 19,000 24,250 26,750 V$ 47,000 V AGI Total itemized deductions $ Taxable income Tax 2,720 v