Question

Freya and Sebastian Hunter are married and have one child. Sebastian is putting together some figures so he can prepare the Hunters' joint 2018 tax retum. So far, he's been able to determine the following concerning income and possible deductions: $1,150 50,770 5,000 5,100 1,450 150 360 Total unreimbursed medical expenses incurred Gross wages and commissions earned IRA contribution Mortgage interest paid Capital gains realized on assets held less than 12 months Income from limited partnership Interest paid on credit cards Qualified dividend income earned Sales taxes paid Charitable contributions made Capital losses realized Interest paid on a car loan Social Security taxes paid Property taxes paid State income taxes paid 610 2,490 1,250 3,450 590 2,750 650 1,700 Given this information, determine the amount of the available itemized deductions. How much taxable income will the Hunters have in 2018? (Note: Assume that Sebastian is not covered by a pension plan where he works, his child qualifies for the child tax credit, and the standard deduction of $24,000 for married filing jointly applies. Do not round your intermediate computations.

that is all the information is given

Answer 1

0 Amount 50,770 Solution: Computation of Hunter's Taveable income Amount Gross wages and commissions earned Qualified dividend income easined 610 Capital gain realized on assets 1,450 Income from limited partnenship Less: capital losses realized (3,450) Gross Income Lese: IRA contribution 150 49,530 5,000 44,530 8,600 Less : cö Total itemized deduction (note -1) (it) standard deduction [which oven in greaten between (1)&(1) 24,000 24,000 Table income for 2018 20,630 NOTE - 1 computation of Itemized deduction Mortgage interest paid $ 5,100 Propenty tax paid $ 650 state income tax paid $ 1,700 charitable contribution made $ 1,150 $ 8, 600