Question
Paul is 66 years old and Tina is 62 years old. In 2019, they file a joint return. They support their 22-year-old son, Jed, who
Paul is 66 years old and Tina is 62 years old. In 2019, they file a joint return. They support their 22-year-old son, Jed, who is a full-time student. He earns $4,000.00 per year as a waiter at a restaurant.
Wages $ 170,000.00
Interest from savings $12,000.00
Interest on NYS qualified bonds $7,000.00
Inheritance from Tinas Aunt Lucy $6,000.00
Child support from Tinas ex-husband Eric $10,000.00
Prize from contest at church $1,000.00
Paul and Tina own a house in Whitestone. The costs associated with the house were as follows: Mortgage interest $7,000.00 (Please note: The amount of the indebtedness is under $750,000.00.) Real estate taxes $8,000.00 They paid hospital bills of $7,000.00 and doctors bills of $6,000.00. Their medical insurance company reimbursed them in the amount of $3,000.00 for the doctors bills. They had prescriptions in the amount of $500.00 and a yearly vitamin expense of $200.00.
Their charitable contributions included: $2,000.00 paid to St. Marys Church $ 500.00 paid to Mr. and Mrs. Elm (neighbors) whose house was damaged in a flood
a. What is Paul and Tinas gross income?
b. What is Pauls and Tinas adjusted gross income ?
c. What is Paul and Tinas standard deduction without regard to their itemized deductions?
d. What is Paul and Tinas net itemized deduction ?
e. How much of the charitable donations are deductible?
f. What is Paul and Tinas taxable income?
g. What is Paul and Tinas tax liability?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started