Daniel and Sophie are a married couple with two dependent sons. Their salaries total $105,000 . They have a capital loss of $4,000 and municipal bond interest income of $900. They paid home mortgage interest of $4,000, state income taxes of $1,500, and medical expenses of $1,100, and they made charitable contributions of $9,000 (The tax year is 2014.)
Assume Daniel and Sophie are both under 65. Enter a "0" for amounts with a zero balance. Use parentheses or a minus sign to enter a loss.)
A. Compute the couples adjusted gross income.
Adjusted Gross Income
B. Compute the couple's itemized deductions:
Itemized deductions
Medical deductions
Home Mortgage interest
State income taxes
Charitable Contributions
Total Itemized deductions
C. Compute amount of personal exemptions:
Personal exemptions
D. Compute their Taxable Income
taxable income