Question
Steve and Beth Compton are married and have one child. Steve is putting together some figures so that he can prepare the Comptons' joint 2011
Steve and Beth Compton are married and have one child. Steve is putting together some figures so that he can prepare the Comptons' joint 2011 tax return. He claim three personal exemptions (including himself). So far, he's been able to determine the following with regard to income and possible deductions:
Total unreinbursed medial 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 1450
Income from limited partnership 200
Job expenses and other allowable deductions 875
Interest paid on credit cards 380
Dividend and interest 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 steve 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 Comptons have in 2011?(Note: Assume that Steve is covered by pension plan where he works, the standard deduction of $11,600 for married filing jointly applies, and each exemption claimed is worth $3,700.)
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