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Emil and Judy Ryan are married and file a joint return. They have no children. E

ID: 2421208 • Letter: E

Question

Emil and Judy Ryan are married and file a joint return. They have no children. Emil is 68 and Judy is 60. They contribute over half of the support for Judy's mother, Cora, age 85, who earned $800 from baby-sitting jobs and received $1,900 in social security benefits during 2015. Cora lives alone in her own apartment. Emil earned a salary of $60,000 in 2015 from his job at Korma Corp., where Emil is covered by his employer's pension plan. Judy, who worked part time in 2015 and earned $1,000, is not covered by an employer's pension plan.

Other items received jointly by Emil and Judy in 2015 were as follows:

Life insurance proceeds refund 100

Interest on life insurance policy's accumulated dividends 300

Dividends on stock of a Swiss corporation 500

Dividend on life insurance policy 200

What is Emil and Judy’s taxable income for 2015?

Explanation / Answer

Taxable income would be:

Emil salary 60000

Judy income 1000

life insurance refund 0

interest on life insurance 0

Divident from stock 500

Dividend on policy 0

Taxable income $61500

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