Sebastian(age 46)and Kaitlin(age 45)are married and file a joint tax return.Their 2015 adjusted gross income is $390,000 and includes $2,600 in investment income ($2,000 in short-term capital gains and $600 of interest income).They provided 100% of the support for their daughter,Olivia,age 26,who lives with them,and earned $4,700 from her part-time job.They also provided 100 percent of the support for Sebastian's mother,Emily,who is 67,blind,and lives in a nursing home.Emily received $4,000 in Social Security benefits and $450 of interest income.What is Sebastian and Kaitlin's deduction for personal and dependency exemptions for 2015?

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Quizplus · Accepted Answer

($390,000 - $309,900)/$2,500 = 32.04; .33 x 2 = 66%.$4,000 x 3 = $12,000 x .66 = $7,920; $12,000 - $7,920 = $4,080.No dependency exemption for daughter,age 26,who earned more than $4,000 income.Mother is dependent because social security income is not taxed.

Sebastian(age 46)and Kaitlin(age 45)are Married and File a Joint Tax