Question

Problem 3-28 (LO. 1) Compute 2017 taxable income in each of the following independent situations. The personal exemption amount for 2017 is $4,050. Click here to access the standard deduction table to use if required. a. Drew and Meg, ages 40 and 41, respectively, are married and fle a joint return. In addition to four dependent children, they have AGI of $65,000 and itemized deductions of $15,000. AGI Less: Less: personal and dependency exemptiones Taxable income $65,000 b. 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 AGI $80,000 Less: personal and dependency exemptions Taxable income c. 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 $75,000 All work saved Cell Phones

Answer 1

a.

AGI = $65000

Less-Personal exemption = $4050

Less - Itemized Deduction = $15000

taxable Income = $45950

b.

AGI = $80000

Less - Standard Deduction = $9350

taxable Income = $70650

c.

AGI = $75000

Less - Itemized Deduction = $10100

taxable Income = $64900

d.

AGI = $58000

Less - Itemized Deduction = $9500

taxable Income = $48500

e.

AGI = $64000

Less - Itemized Deduction = $9900

taxable Income = $54100

AGI = $75000

Less-Personal exemption = $4050

Less - Itemized Deduction = $10100

taxable Income = $60850