Greg and Isabella are married, file jointly, and have three dependents (qualifying children ages 13, 16, and 18). They have salaries of $115,000, a capital loss of $4,000, and tax-exempt interest income of $900. They paid home mortgage interest of $10,000, state income taxes of $5,000, property taxes of $2,900, medical expenses of $1,000, and charitable contributions of $4,000. Federal income taxes of $11,100 were withheld from their paychecks. (The tax year is 2021.)

Greg and Isabella are married, file jointly, and have three dependents (qualifying children ages 13, 16, and 18). They have salaries of $115,000, a capital loss of $4,000, and tax-exempt interest income of $900. They paid home mortgage interest of $10,000, state income taxes of $5,000, property taxes of $2,900, medical expenses of $1,000, and charitable contributions of $4,000. Federal income taxes of $11,100 were withheld from their paychecks. (The tax year is 2021.) (Click the icon to view the standard deduction amounts.) (Click the icon to view the 2021 tax rate schedule for the Married filing jointly filing status.) Read the requirement. Begin by computing their taxable income. (If a box is not used in the table leave the box empty; do not select a label or enter a zero. Enter a "0" for amounts with a zero balance. Use parentheses or a minus sign to enter a loss.) Salaries 115000 Allowable capital loss -3000 Adjusted gross income 112000 Minus: Standard deduction 25100 Minus: Non-itemizer charitable contributions deduction 600 Taxable income 86300