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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 2020 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 2020. Click here to access the tax rate schedule. Round the total tax to the nearest dollar. Bonnie Jake Joint AGI $ $ $ Total itemized deductions $ $ $ Taxable income $ $ $ Tax
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