The Tax Formula for Individuals, Filing Status and Tax Computation, Define qualifying dependents, The Standard Deduction (LO 1.3, 1.5, 1.6, 1.7)

Jim, age 50, and Martha, age 49, are married with three dependent children. They file a joint return for 2018. Their income from salaries totals $49,500, and they received $10,125 in taxable interest, $5,000 in royalties, and $3,000 in other ordinary income. Jim and Martha's deductions for adjusted gross income amount to $3,200, and they have itemized deductions totaling $18,200.

Table for the standard deduction

Filing Status	2018 Standard Deduction
Single	$ 12,000
Married, filing jointly	24,000
Married, filing separately	12,000
Head of household	18,000
Qualifying widow(er)	24,000

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If an amount is zero, enter "0".

Calculate the following amounts:

a. Gross income	$
b. Adjusted gross income	$
c. Itemized deduction or standard deduction amount	$
d. Deduction for exemptions	$
e. Taxable income	$
f. Income tax liability (before any credits)	$