Nick and Jolene are married. Nick is 64 and retired last year from his job with

Question

Nick and Jolene are married. Nick is 64 and retired last year from his job with Amalgamated Company.  Jolene is 56 and works part-time as a special education teacher. They give you the following list of projected cash receipts for 2013:

            Jolene's salary                                                $23,000

            Nick's pension - fully taxable                            22,500

            Interest income                                                   4,000

            Dividend income (all qualified)                           2,500

            Nick

Explanation / Answer

taxable income=23000+22500+4000+2500+7000-12350=46650

Tax liability=0 as income is less than maximum exemption limit i.e., 250000 no tax will be given.

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