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1 October, 02:02

Eugene and Velma are married. For 2018, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Eugene's itemized deductions are $14,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state and Eugene deducts the greater of the standard deduction or itemized deductions, what is Eugene's taxable income?

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  1. 1 October, 02:08
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    Eugene's taxable income is $10,800

    Explanation:

    in case of separate filling, if one spouce sellected itemized deduction then other will also have to use itemized deduction.

    taxable income = $25,000 - $14,200

    = $10800

    Therefore, Eugene's taxable income is $10,800.
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