Question
Emily and Luke Robinson are married and have one child. Luke is putting together some figures so that he can prepare the Robinsons joint 2018
Emily and Luke Robinson are married and have one child. Luke is putting together some figures so that he can prepare the Robinsons joint 2018 tax return. So far, he's been able to determine the following with regard to 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 | 5,200 |
Capital gains realized on assets held less than 12 months | 1,450 |
Income from limited partnership | 200 |
Interest paid on credit cards | 380 |
Qualified dividends | 610 |
Interest earned on bonds | 230 |
Sales taxes paid | 2,490 |
Charitable contributions made | 1,200 |
Capital losses realized | 3,475 |
Interest paid on a car loan | 590 |
Social Security taxes paid | 2,750 |
Property taxes paid | 750 |
State income taxes paid | 1,700 |
Assume that Luke 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. How much taxable income will the Robinsons have in 2018? Note that personal exemptions were suspended for 2018. Do not round your intermediate computations. Round the answer to the nearest dollar.
$ _____________
Single | |
Taxable Income | Tax Rate |
$0 - $9,525 | 10% of taxable income |
$9,526-$38,700 | $952.50 plus 12% of the amount over $38,700 |
$38,701 - $82,500 | $4,453.50 plus 22% of the amount over $82,500 |
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