Ask Question
6 October, 23:06

Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2019, Ed and Jane realized the following items of income and expense: Amount Items:

$35,000 Ed's Salary, $70,000 Jane's Salary, $400 Municipal bond interest income, $1,000 Qualified business income, $7,000 Alimony paid (for AGI deduction), $10,000 Real property tax (from AGI deduction) $15,000) Charitable contributions (from AGI).

They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2019 standard deduction amount for MFJ taxpayers is $24,400.

Required:

1. What is their AGI?

2. What is their Taxable income?

+3
Answers (1)
  1. 7 October, 02:35
    0
    1) AGI = $112,400

    2) Taxable Income = $80,600

    Explanation:

    Ed's Salary = $35,000

    Jane's Salary = $70,000

    Municipal bond interest income = $400

    Qualified business income = $1,000

    Alimony paid (for AGI deduction) = $7,000

    Real property tax (from AGI deduction) = $10,000

    Charitable contributions (from AGI) = $15,000

    The total gross income for Jane and Ed = $70,000 + $35,000 = $105,000

    1) Their AGI (Adjusted Gross Income) = $105,000 + $400 + $7,000 = $112,400

    2) Their taxable income = $112,400 - $24400 - $7000 - $400 = $80,600
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2019, Ed and Jane ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers