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Diego, age 28, married Dolores, age 27, in 2018. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. Diego


Diego, age 28, married Dolores, age 27, in 2018. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. Diego and Dolores' deductions for adjusted gross income amounted to $2,000; their itemized deductions were $16,000, and they have no dependents.

Table for the standard deduction

Filing Status 2018 Standard Deduction
Single $ 12,000
Married, filing jointly 24,000
Married, filing separately 12,000
Head of household 18,000
Qualifying widow(er) 24,000

a. What is the amount of their adjusted gross income?
$ _____

b. In order to minimize taxable income, Diego and Dolores will take the standard deduction in the amount of $ _____

c. What is the amount of their taxable income?
$ _____

d. What is their tax liability for 2018?
$ _____

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