Oscar and Mary have no dependents and file a joint income tax return for 2015. They have adjusted gross income of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2015 income tax return?

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Quizplus · Accepted Answer

To calculate taxable income, subtract the standard deduction and personal exemptions from the adjusted gross income. For 2015, the standard deduction for married filing jointly is $12,600, and the personal exemption is $4,000 per person. Therefore, taxable income = $140,000 - $30,000 (itemized deductions) = $110,000. Then subtract $8,000 (2 personal exemptions) to get $102,000.

Oscar and Mary Have No Dependents and File a Joint