33. Compute the taxable income for 2018 under each of the following circumstance

Question

33. Compute the taxable income for 2018 under each of the following circumstances: a. Jim is married and files a joint return. Jim and his wife have two dependent children. They have adjusted gross income of $30,000 and itemized deductions of $23,700. Jim is single with no dependents. His adjusted gross income is $50,000 with itemized deductions of $10,800. Jim is a full-time college student under 24 supported by his father. Jim earned $2,600 from a part-time job and had $500 of interest income. His itemized deductions were $600. Jim is married but files separately and claims two dependent children. His adjusted gross income is $65,000 and he claims $12,900 of itemized deductions. Jim's wife also itemizes on her return Assume the same situation as in (d), but Jim's itemized deductions are only $10,900. b. c. d. e.

Explanation / Answer

1) Jim is married and files a joint return. Jim and his wife have two dependent children. They have adjusted gross income of $30,000 and itemized deductions of $12,300 Adjusted Gross Income $30,000.00 Less: Standard Deduction -$24,000.00 Taxable Income $6,000.00 2)Jim is single with no dependents. His adjusted gross income is $50,000 with itemized deductions of $10,800. Adjusted Gross Income $50,000.00 Less : standard Deduction -$12,000.00 Taxable Income $38,000.00 3)Jim is a full-time college student under 24 supported by his father. Jim earned $2,600 from a part-time job and had $500 of interest income. His itemized deductions were $600 Adjusted Gross Income $3,100.00 Less : standard Deduction ($350 + $2600) -$2,950.00 Taxable Income $150.00 Standard Deduction is the greater of $1,050 or the sum of $350 and the individual’s earned income 4)Jim is married but files separately and claims two dependent children. His adjusted gross income is $65,000 and he claims $12,900 of itemized deductions. Jim’s wife also itemizes on her return. Adjusted Gross Income $65,000.00 Less : Itemised Deuction(Greater of SD and Itemised) -$12,900.00 Taxable Income $52,100.00 5) Assume the same situation as in (d), but Jim’s itemized deductions are only $10,900 Adjusted Gross Income $65,000.00 Less : standard Deduction -$12,000.00 Taxable Income $53,000.00

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