Question
Sam and Kate Coleman are married and have one child. Sam is putting together some figures so that he can prepare the Colemans joint 2015
Sam and Kate Coleman are married and have one child. Sam is putting together some figures so that he can prepare the Colemans joint 2015 tax return. He can claim three personal exemptions (including himself). So far, hes been able to determine the following with regard to income and possible deductions:
Total unreimbursed medical expenses incurred $1,155
Gross wages and commissions earned 50,770
IRA contribution 5,000
Mortgage interest paid 5,200
Capital gains realized on assets held less than 12 months 1,450
Income from limited partnership 200
Job expenses and other allowable deductions 875
Interest paid on credit cards 380
Qualified dividend income earned 610
Sales taxes paid 2,470
Charitable contributions made 1,200
Capital losses realized 3,475
Interest paid on a car loan 570
Alimony paid by Ross to his first wife 6,000
Social Security taxes paid 2,750
Property taxes paid 700
State income taxes paid 1,700
Given this information, how much taxable income will the Colemans have in 2015? (Note: Assume that Sam is not covered by a pension plan where he works, the standard deduction of $12,600 for married filing jointly applies, and each exemption claimed is worth $4,000.)
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