Question
. Chandler and his wife Monica use the filing status of married filing joint. Both are under the age of 65 and neither are blind.
. Chandler and his wife Monica use the filing status of married filing joint. Both are under the age of 65 and
neither are blind.
They have two dependents and Chandler retired during the year.
They had the following items of income and expense for 2019:
Chandlers Salary, prior to retirement | 100,000 |
Interest income from Bank of Albuquerque | 8,900 |
Interest income from State of California bonds | 6,800 |
Pension (use a 65% exclusion ratio) | 24,000 |
Qualified dividends from Intel Corporation | 2,600 |
Alimony paid (divorce finalized in 2015) | 4,250 |
Child support paid | 7,000 |
Income from illegal activities | 2,500 |
Unemployment compensation | 5,300 |
Lottery winnings! | 2,700 |
Long-term capital loss | (3,800) |
Personal loan from his parents | 10,000 |
Itemized deductions | 23,875 |
a. What is Chandler and Monicas Adjusted Gross Income
(line 7, Form 1040) for 2019?
b. What is Chandler and Monicas Tax (line 11, Form 1040) for 2019?
Hint! Dont forget that qualified dividends are taxed at a lower tax rate!
not sure why its cutting off the information but the top is neither are blind
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered 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