The Tax Formula for Individuals, Filing Status and Tax Computation (LO 1.3, 1.5, 1.6, 1.7)

Diego, age 28, married Dolores, age 27, in 2017. Their salaries for the year amounted to $47,230 and they had interest income of $3,500. Diego and Dolores' deductions for adjusted gross income amounted to $2,000; their itemized deductions were $11,800; they claimed two exemptions on their return; and, they filed a joint return.

Table for the standard deduction

Filing Status	2017 Standard Deduction
Single	$ 6,350
Married, filing jointly	12,700
Married, filing separately	6,350
Head of household	9,350
Qualifying widow(er)	12,700

Click here to access the tax tables.

a. What is the amount of their adjusted gross income? $

b. In order to minimize taxable income, Diego and Dolores will in the amount of $.

c. What is the amount of their taxable income? $

d. What is their tax liability for 2017? $