Question
Katie and Rich Baylor are a busy young couple with a son, Caleb, who is 6. The Baylors are concerned about their tax issues, but
Katie and Rich Baylor are a busy young couple with a son, Caleb, who is 6. The Baylors are concerned about their tax issues, but they are also committed to planning for the future of their family. Next year Richard should be able to pay off the remaining balance of his law school student loans. Contributing to Rich's 401(k) and Roth IRA are an annual priority. The following information reflects their tax year.
Gross income $100,000
Student loan interest $ 1,965
Katarina's traditional IRA $ 1,500
Total itemized deductions $14,987
Standard deduction $11,600
Personal exemption amount $ 3,700
Marginal tax bracket 25%
What is the Baylors adjusted gross income?
Question 23 options:
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