Question
Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2019, Ed and Jane realized
Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2019, Ed and Jane realized the following items of income and expense:
Item
Amount Ed's Salary $ 35,000
Jane's Salary 70,000
Municipal bond interest income 400
Qualified business income 1,000
Alimony paid (for AGI deduction) (7,000 )
Real property tax (from AGI deduction) (10,000 )
Charitable contributions (from AGI) (15,000 )
They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2019 standard deduction amount for MFJ taxpayers is $24,400.
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