Alan and Sara Winthrop are a married couple who file a joint income tax return.They have two children,so they claim a total of 4 exemptions ($4,050 for each exemption).In addition,they have legitimate itemized deductions totaling $25,750.Their total income from wages is $168,100.What is the couple's taxable income?
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Question

Quizplus · Accepted Answer

First,calculate their exemption total:
Exemptions = 4 × $4,050 = $16,200
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Now,calculate their taxable income as follows:
Taxable income = Salary - Exemptions - Itemized Deductions
Taxable income = $168,100 - $16,200 - $25,750
Taxable income = $126,150

Alan and Sara Winthrop Are a Married Couple Who File