Problem 3-24 (LO. 1)
Compute 2018 taxable income in each of the following independent situations. Click here to access
standard deduction table
to use if required.
Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to
four dependent children, they have AGI of $125,000 and itemized deductions of $27,000.
Sybil, age 40, is single and supports her dependent parents, who live with her. Sybil also
supports her grandfather, who lives in a nursing home. She has AGI of $80,000 and itemized
deductions of $8,000.
Scott, age 49, is a surviving spouse. His household includes two unmarried stepsons who qualify
as his dependents. He has AGI of $75,000 and itemized deductions of $10,100.
Amelia, age 33, is an abandoned spouse and maintains a household for her three dependent
children. She has AGI of $58,000 and itemized deductions of $10,650.