What is H and W$$s gross income? What is H and W$$s adjusted gross income? Blank $2$

$($c$)$ What is H and W$$s taxable income? Blank $3$

$($d$)$ What is H and W$$s tax liability $($round answer$)?$ What is H and W$$s gross income?H$,$ age $45,$ and W$,$ age $43,$ are married with a $5-$month$-$old son. H and W always file jointly. H is the vice president of a local bank and is paid a salary of $$95,000.$ W is registered nurse at a large hospital and is paid a salary of $$80,000.$ H is a partner in BC partnership. He is a $50\%$ owner. The partnership had total income of $$50,000($qualified business income$)$ in $2023$ and distributed $$5,000$ to H in $2023.$ In addition to the above income, H and W received the following in $2023$:

$$ $$2,000$ qualified cash dividend on ABC, Inc. stock.

$$ $$1,200$ interest on State of Maryland bonds that H owns

$$ $$5,000$ on interest from a saving account that H and W own together.

$$ W received a check for $$400$ from her employer in recognition of her outstanding service to the hospital during the past $10$ years.

$$ W and H received $$1,800$ refund in $2023$ on their $2022$ state income taxes. Their itemized deductions in $2022$ totaled $$26,000.$

$$ The bank provides H with $$90,000$ of group term life insurance protection. The bank provides all full$-$time employees with group term insurance. H has worked for the bank all year. $($Under the Uniform Premiums, the cost per $$1,000$ of protection per month is $\mathrm{.}15$ for a $45-49$ year old.$)$

$$ The bank pays $$225$ a month for a parking space for H$.$

$$ W sold his car for $$6,000.$ He paid $$5,500$ for it $10$ months ago.

$$ The hospital provides W with $$1,000$ for child care all of which she used to pay a nanny to take care of her $5-$month$-$old.

$$ H has access to a gym on his work$$s premises. A gym membership costs $$400$ a year.

$$ Because W must be available should an emergency arise, she is required to eat her lunches in the hospital cafeteria. The value of the free meals provided by her employer during $2023$ was $$1,100.$

$$ W was injured on the job in $2023$ and received worker$$s compensation in the amount of $$2,000.$

$$ H$$s father passed away in February $2023$ leaving H a house valued at $$300,000.$ H rented the land to R from March to December $31,2023$ for $$800$ a month.

$$ W$$s father gave her a gift of $$20,000$ in $2023.$

$$ H also received $$100,000$ in life insurance when his father died.

$$ H purchased an annuity years ago for $10,000.$ The annuity will pay $2,000$ for $6$ years. In $2023$ H received the first $2,000.$

$$ H paid $$2,000$ in alimony to his ex$-$wife $($divorce $2017)$ and $$4,000$ in child support.

$$ H and W paid $$7,000$ in qualified mortgage interest.

$$ H and W paid $$6,000$ in real property taxes and $$13,000$ in state income taxes.

$$ H and W had the following expenses not covered by medical insurance: $$19,500$

$$ H and W made $$19,000$ in qualified charitable contributions

Y ou aren't follow the formula on the front page of chapter $4.$ To get to AGI, you only subtract for AGI deductions. There is only one in the problem.

Most of the benefits are not taxable because of the dollar amount. You will have to tax a portion of annuity and group life insurance premiums $($see chapter $5$ handout for calculations $-$ fringe benefits.$)$ Part of the refund is taxable $-$ see tax benefit rule.

A distribution is notvtaxable; a percentage of the earnings are.Gross Income:$$ Gross Income $-61($a$)$: Gross income includes all income from whatever source derived,unless specifically excluded under the Codeo Concept is interpreted broadly by the courts$$ Income that is excluded or deferred is not included in gross income.o Excluded income is never taxedo Deferred income is taxed when recognized in a subsequent yea