Question
Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $88,750 and they had interest income of $2,660. Diego
Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $88,750 and they had interest income of $2,660. Diego and Dolores' deductions for adjusted gross income amounted to $5,170; their itemized deductions were $8,425; they claimed two exemptions on their return; and, they filed a joint return.
Table for the standard deduction
Filing Status 2017 Standard Deduction
Single $ 6,350
Married, filing jointly 12,700
Married, filing separately 6,350
Head of household 9,350
Qualifying widow(er) 12,700
a). What is the amount of their adjusted gross income?
b). In order to minimize taxable income, Diego and Dolores will in the amount of $.
c). What is the amount of their taxable income?
d). What is their tax liability for 2017?
Step by Step Solution
3.33 Rating (153 Votes )
There are 3 Steps involved in it
Step: 1
Solution a What is the amount of their adjusted gross income Adjusted Gross I...Get Instant Access to Expert-Tailored 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