# Week 1 Questions-Answers - 1 3-31 Tom and Linda are married...

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1 3-31 Tom and Linda are married taxpayers who file joint return. They have itemized deductions of 11,950 and four exemptions. Assuming an adjusted gross income of 40,000 what is their taxable income? Formula Adjusted gross income(40,000)- Itemized deductions(11,950)-(number exemptions(4)* exemption amount (3,700))= taxable income 40,000-11,950- 14,800=13,250 Taxable income=13,250 3-32 Compute Marie’s table income for 2011, assuming she is single and claims two dependent children. Her adjusted gross income is \$70,000, and she has itemized deductions of \$9,000 Itemized AGI \$70,000 Itemized deductions \$9,000 2 [email protected]\$3700 \$7,400 Taxable income = \$53,600 Standard AGI \$70,000 Standard deductions \$8,500 2 [email protected]\$3700 \$7,400 Taxable income = \$54,100 Marie should take the Itemized deduction 3-36 Compute Stanley's taxable income for 2011, assuming he has \$1,000 in wages from working in a grocery store and \$2,000 in interest income from some bonds he owns. Stanley, age 16, is claimed as a dependent on his parents' return. Total gross income is \$3,000 (1,000 wages + 2,000 unearned income. Taxable income is \$1,700

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Week 1 Questions-Answers - 1 3-31 Tom and Linda are married...

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