Question

putation, The Standard Deduction (LO 1.3, 1.5, 1.8) Diego, age 28, married Dolores, age 27, in 2021. Their salaries for ...


putation, The Standard Deduction (LO 1.3, 1.5, 1.8) Diego, age 28, married Dolores, age 27, in 2021. Their salaries for the year amounted to $53,645 and they had interest income of $2,640. Diego and Dolores deductions for adjusted gross income amounted to $3,830; their itemized deductions were $8,175, and they have no dependents. Their 2021 EIP was equal to the 2021 RRC. Table for the standard deduction Filing Status Standard Deduction Single $12,550 Married, filing jointly 25,100 Married, filing separately 12,550 Head of household 18,800 Qualifying widow(er) 25,100 Click here to access the tax tables. a. What is the amount of their adjusted gross income? b. In order to minimize taxable income, Diego and Dolores will in the amount of s
Transcribed: The Tax Formula for Individuals, Filling Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8) Diego, age 28, married Dolores, age 27, in 2021. Their salaries for the year amounted to $53,645 and they had interest income of $2,640. Diego and Dolores deductions for adjusted gross income amounted to $3,830; their itemized deductions were $8,175, and they have no dependents. Their 2021 EIP was equal to the 2021 RRC. Table for the standard deduction Filing Status Standard Deduction Single $12,550 Married, filing jointly 25,100 Married, filing separately 12,550 Head of household 18,800 Qualifying widow(er) 25,100 Click here to access the tax tables. a. What is the amount of their adjusted gross income? b. In order to minimize taxable income, Diego and Dolores will in the amount of c. What is the amount of their taxable income? d. What is their tax liability for 20217

Answer

Disclaimer:

“Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts for you. To get the remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.”.

Introduction:

Your adjusted gross income is your total income less certain deductions. AGI is the starting point for computing your taxes and evaluating your eligibility for various tax credits and deductions that can help you reduce your overall tax payment.

Solution:

Answer a.

Adjusted gross income = Salaries + Interest income - Deductions for AGI  = $53,645  + $2,640 - $3,830  = $ 52,455

Answer b.

Standard deduction = $25,100

Answer c.

Taxable income = Adjusted gross income - Standard deduction  = $ 52,455 - $25,100  = $ 27,355

...
Login to view full answer
Recent Questions