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Jeff and Judee are a married couple with two dependent sons. Their salaries total $115,000. They have a capital loss of $7,000 and tax-exempt interest
Jeff and Judee are a married couple with two dependent sons. Their salaries total $115,000. They | |||||||||
have a capital loss of $7,000 and tax-exempt interest income of $600. They paid home mortgage | |||||||||
interest of $13,000, state income taxes of $3,500, and medical expenses of $10,000, and the made | |||||||||
charitable contributions of $7,000 for tax year 2014. | |||||||||
A. Compute their adjusted gross income | |||||||||
Salaries | |||||||||
Interest income | |||||||||
Allowable Capital Loss | |||||||||
AGI | 4 | ||||||||
B. Compute itemized deductions | |||||||||
Itemized deductions | |||||||||
Medical expenses | |||||||||
Home Mortgage Interest | |||||||||
State Income Taxes | |||||||||
Charitable Contributions | |||||||||
Total Itemized Deductions | |||||||||
C. Compute Personal Exemptions | |||||||||
Personal Exemptions | 6 | ||||||||
D. Compute Taxable Income | |||||||||
Taxable Income | 1 | ||||||||
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