Question
Jane and Ed Rochester are married with a two-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 two-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 |
Eds Salary | $55,000 |
Janes Salary | 34,400 |
Interest income on their saving account | 600 |
Municipal bond interest income | 400 |
Lottery winning | 6,000 |
Dividend received from GE stocks | 500 |
Jane received alimony from her ex | 1000 |
Jane received gift from her aunt | 3000 |
Alimony paid to Eds ex-wife | (7,000) |
Child support paid to Eds ex-wife | (5,000) |
Real property tax | (10,000) |
Home mortgage interest expenses | (6,000) |
Gambling loss | (4500) |
Their employers withheld $1,800 in federal income taxes and $800 state income tax from their paychecks (in the aggregate). Please answer the following questions:
What is the couple's gross income?
What is the couple's AGI?
What is the couple's itemized deduction?
What is the couple's taxable income?
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