Jake and Patricia are married, file jointly, and have one dependent (12-year old qualifying child). Jake receives a $91,000 salary. Patricia is self-employed. Her sole proprietorship's revenues are $110,000, and its expenses are $43,000. Jake and Patricia each make a $6,000 deductible contribution to a traditional IRA. Their itemized deductions are $29,000. Federal income taxes of $6,500 are withheld from Jake's paychecks, and Patricia makes $2,600 of estimated tax payments (Click the icon to view the standard deduction and child credit amounts.) (Click the icon to view the 2019 tax rate schedule for the Married filing jointly filing status.) Read the requirement First, compute their gross income. Jake's salary Patricia's gross income Gross income $ 91,000 110,000 $ 201,000 Next, compute their adjusted gross income. Gross income 201,000 Minus: Business expenses (43,000) Minus: IRA contributions (12,000) $ 146,000 Adjusted gross income Next, compute their taxable income. (Assume that Patricia qualifies for the qualified business income deduction.) Adjusted gross income 146000 Minus: Qualified business income deduction Taxable income Next, compute their adjusted gross income. LAO Adjusted gross income Gross income Minus: Business expenses Minus: IRA contributions Minus: Itemized deductions Minus: Qualified business income deduction Minus: Standard deduction Minus: Qualified business income deduction ricia qualifies for the qualified business income 146000 Taxable income