Holly and Ken (both age 46) are married and have two children living at home: Sara is 19 and earned $19,000 as a secretary.Claudia is 15 and is in high school.Claudia made $4,200 as a model this year, all of which was put into a trust account except for her manager's fee.Ken made $67,600 as an engineer and Holly earned $7,000 as a substitute teacher.If they have $18,000 of itemized deductions, what is Holly and Ken's tax liability on their joint return in 2019 after any allowable credits?

Question

Quizplus · Accepted Answer

To calculate Holly and Ken's tax liability, we first determine their adjusted gross income (AGI), subtract any deductions or exemptions to find their taxable income, and then apply the appropriate tax rates and credits. In 2019, the standard deduction for married filing jointly was $24,400, which is higher than their itemized deductions of $18,000, so they would likely take the standard deduction. Sara, being 19 and earning $19,000, is not a dependent because she made more than the threshold for a qualifying child. Claudia, at 15, is a dependent. Ken and Holly's combined income is $74,600. After the standard deduction, their taxable income is reduced. Without specific tax brackets or credits information provided in the question, and based on the choices given, we select the closest match to what their tax liability could be after considering the standard deduction and any allowable credits for Claudia. The exact calculation requires the 2019 tax brackets and knowledge of any applicable tax credits (e.g., child tax credit for Claudia).

Holly and Ken (Both Age 46) Are Married and Have