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Chapter 3 Financial Planning Exercise 5 Calculating taxable income for a married couple filing jointly

Freya and Sebastian Hunter are married and have one child. Sebastian is putting together some figures so he can prepare the Hunters' joint 2018 tax return. So far, hes been able to determine the following concerning income and possible deductions:

Total unreimbursed medical expenses incurred	$1,160
Gross wages and commissions earned	50,840
IRA contribution	5,000
Mortgage interest paid	5,100
Capital gains realized on assets held less than 12 months	1,450
Income from limited partnership	250
Interest paid on credit cards	380
Qualified dividend income earned	600
Sales taxes paid	2,450
Charitable contributions made	1,200
Capital losses realized	3,500
Interest paid on a car loan	570
Social Security taxes paid	2,750
Property taxes paid	650
State income taxes paid	1,600

Given this information, determine the amount of the available itemized deductions. How much taxable income will the Hunters have in 2018? (Note: Assume that Sebastian is not covered by a pension plan where he works, his child qualifies for the child tax credit, and the standard deduction of $24,000 for married filing jointly applies.) Do not round your intermediate computations. $