Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?

Question

Mathematics

Ignacio Wilson

28 December, 09:48

Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?

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Answers (1)

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Eddie Mays · Answer 1

The correct answer is:

$41,843.

Explanation:

We start with their gross salary, $81,031.

Taking off the adjustment of $2,914 for business expenses leaves us with

81031-2914 = $78,117.

Taking off the adjustment of $1939 for business losses leaves us with

78117-1939 = $76,178.

Taking off the deduction of $4140 for medical expenses leaves us with

76178-4140 = $72,038.

Taking off the adjustment of $4825 for contributions to retirement leaves us with

72038-4825 = $67,213.

Taking off the deduction of $2420 for charitable donations leaves us with

67213-2420 = $64,793.

Four exemptions at $3650 apiece is 4 (3650) = $14,600. Taking this off leaves us with

64793-14600 = $50,193.

Lastly, taking off the standard deduction of $8350 leaves us with

50193-8350 = $41,843.