Question
Jim (age 50) and Martha (age 49) are married with three dependent children. They file a joint return for 2016. Their income from salaries totals
Jim (age 50) and Martha (age 49) are married with three dependent children. They file a joint return for 2016. Their income from salaries totals $49,500, and they received $10,125 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Jim and Martha's deductions for adjusted gross income amount to $3,200, and they have itemized deductions totaling $13,200. Table for the standard deduction Filing Status 2016 Standard Deduction Single $ 6,300 Married, filing jointly 12,600 Married, filing separately 6,300 Head of household 9,300 Qualifying widow(er) 12,600
Calculate the following amounts:
a. Gross income $
b. Adjusted gross income $
c. Itemized deduction or standard deduction amount $
d. Number of exemptions
e. Taxable income $
f. Income tax liability $
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