Joe and Marcia,a married couple with three young children,have a gross income of $120,000,adjustments of $6,700,and itemized deductions totaling $16,900.If personal exemptions for the year are $3,700 each and the standard deduction is $11,600 for married couples,what is Joe and Maria's taxable income if they file jointly?

Question

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First, we need to calculate the couple's taxable income by subtracting their adjustments and itemized deductions from their gross income:

$120,000 - $6,700 - $16,900 = $96,400

Next, we need to calculate their total exemptions by multiplying the personal exemption amount by the number of exemptions (5):

$3,700 x 5 = $18,500

Since the couple's total itemized deductions and exemptions ($18,500 + $16,900 = $35,400) are greater than the standard deduction for married couples ($11,600), they should itemize their deductions.

To calculate their taxable income, we subtract their total itemized deductions and exemptions from their adjusted gross income:

$96,400 - $35,400 = $61,000

Therefore, Joe and Marcia's taxable income if they file jointly is $61,000.

Joe and Marcia,a Married Couple with Three Young Children,have a Gross