Question
Hello, can you please help me solve this tax problem? Hermione and Sebastian are married and have three children living at home for whom they
Hello, can you please help me solve this tax problem?
Hermione and Sebastian are married and have three children living at home for whom they provided over half of their support: Jeremy, age 21, goes to college full-time and earned $7,000 from his part-time job and $500 in interest income from his savings account; Emma is 19 and earned $19,000 as a secretary; Serena is 15 and is in high school. Serena made $42,000 as a model this year, all of which was put into a trust account except for her manager's fee. Sebastian made $65,000 this year as an engineer and Hermione earned $7,000 as a substitute teacher. If they have $18,000 of itemized deductions and Serena makes a fully deductible contribution to her IRA of $2,000, what is Hermione and Sebastian's gross income, adjusted gross income and taxable income on their joint return this year? Show all calculations and explain fully any assumptions you are making.
Thank you!
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