Eugene and Velma are married.For 2017,Eugene earned $25,000 and Velma earned $30,000.They have decided to file separate returns and are each entitled to claim one personal exemption.They have no deductions for adjusted gross income.Eugene's itemized deductions are $11,200 so he is going to itemize.Velma's itemized deductions are $4,000.Assuming Eugene and Velma do not live in a community property state,what is Velma's taxable income?

Question

Quizplus · Accepted Answer

Since Eugene is itemizing his deductions, Velma cannot claim the standard deduction and must also itemize. Therefore, her total itemized deductions are $4,000. To find Velma's taxable income, we must subtract her personal exemption ($4,050) and her itemized deductions ($4,000) from her gross income ($30,000).

$30,000 - $4,050 - $4,000 = $21,950

Therefore, Velma's taxable income is $21,950.

Eugene and Velma Are Married