Question

11 of 11 This Question: 5 pts Cory has $57,000 of salary and $10,000 of itemized deductions Casey has $88,000 of salary and $17,000 of itemized deductions. They are married and under age 65. (Click the icon to view the standard deduction amounts) Read the requirements Requirement a, Compute their taxable incomes if they file separately and Casey claims itemized deductions on her return. First compute the taxable income for Cory Taxable income Now compute the taxable income for Casey Taxable income Requirement b. Compute their taxable income if they file jointly Assume their totalitemized deductions equals the sum of their separate itemized deductions Taxable income Choose from any list or enter any number in the input fields and then continue to the next question Save to Lale Type here to search

Answer 1

We have to compute Cory's and Casey's taxable incomes when they file separately and when they file together.

Cory's salary is $57,000 with itemized deduction of $10,900 and Casey's salary is $88,000 with itemized deduction of $17,000.

a.

First, we will compute Cory's taxable income:

Cory's Salary: $57,000

Less: Itemized deduction: $10,900

Taxable Income = $ 46,100

Next, we will compute Casey's taxable income:

Casey's Salary: $88,000

Less: Itemized deduction: $17,000

Taxable Income = $71,000

b. First we will compute taxable incomes when filed jointly:

Total Salary($57,000 + $88,000): $145,000

Less: Itemized deduction($10,900 + $17,000): $27,900

Taxable Income = $117,100