Carl, age 42, is married and has three children. In preparing to go to his accountant, he determines that he has $63,100 of salary income and $250 in dividends. He contributes $4,000 to a Roth IRA and has $6,800 of itemized deductions. His wife has no income. What is the taxable income on their 2018 joint return?

Question

Quizplus · Accepted Answer

To calculate Carl's taxable income:
Salary income: $63,100
Dividends: $250
Subtotal: $63,350
Subtract Roth IRA contribution: -$4,000
Subtract itemized deductions: -$6,800
Taxable income: $52,550
Therefore, the taxable income on their joint return is $52,550.

Carl, Age 42, Is Married and Has Three Children