Question

Johnathan and Rebecca are married and file a join return. In 2019, Johnathan earned $75,000 from his job as a medical assistant. Johnathan is a participant in his employer's medical plan and his employer pays his premiums of $5,000 per year. Rebecca earned $50,000 in her entry level accounting job. Rebecca is studying for the CPA exam. Her employer requires her to belong to the Colorado Society of CPAs in anticipation of completing her licensure. The company pays her dues of $300 per year so she can maintain her membership. In 2019, Johnathan's aunt Gertrude sent him a check for $10,000 because he was her favorite nephew. Rebecca owns City of Metropolis bonds that paid interest of $500 for the year. The couple had the following other expenses for 2019: Out of pocket medical costs $7,000 State income taxes $4,000 Mortgage principal $12,000 and interest $5,500 Federal income taxes $10,000 Charitable contribution paid to a 501c3 organization $10,000 The standard deduction for a married couple for 2019 was $24,400. Based upon the above facts, provide your answer to calculate the following:

Answer 1

Tax Calculator	Amount
Johnathan Earned	$     75,000.00
Medical Premium paid by employer on behalf	$       5,000.00
Rebecca Earns	$     50,000.00
Membership dues paid by company	$           300.00
Interest on Bonds	$           500.00
Gift Received from Aunty	$     10,000.00
Gross Total Income	$ 1,40,800.00
Less:
Interest on Bonds	$           500.00
Membership dues paid by company	$           300.00
Gift Received from Aunty	$     10,000.00
Medical Premium paid by employer on behalf	$       5,000.00
Adjusted Total Income	$ 1,25,000.00
Charity Contribution	$     10,000.00
State Income Tax & Federal Income Tax	$     14,000.00
Mortagae Interest	$       5,500.00
Medical Cost	$       7,000.00
Taxable Income	$     88,500.00

1. The Gross Total Income is $ 1,40,800.00

2.Adjusted Total Income is $ 1,25,000.00

3.Taxable Income is $     88,500.00

4.Johnathan & Rebicca can take the standard deduction of $24,400 or itemized Deduction

Itemized Dedcutions are $ 36,500 which is high than $24,400 Hence $36,500 is taken as Deduction