LO1: Formula for Individual Income Tax A. Write The Formula to Calculate Individual Taxable income in the USA THEORY B.Using formula above.... The following information is available for Bob and Brenda Horton, a married couple filing a joint return, for 2018. Both Bob and Brenda are age 32 and have no dependents. Tax liability (use Rate Schedule in text front cover) * CALCULATION Salaries Interest income Deductible IRA contributions Itemized deductions $200,000 12,000 11,000 25,600 Withholding 31,000 a. What is the amount of their gross income? b. What is the amount of their adjusted gross income? c. What is the amount of their taxable income? d. What is the amount of their tax liability (gross tax), rounded to the nearest dollar? e. What is the amount of their tax due or (refund due)? C. Taxpayers have the choice of claiming either deductions for AGI or the standard deduction. Answer TRUE OR FALSE