Rachel and Rob are married and living together in California.Their income is: $$\begin{array}{l}
\begin{array} { l r }
\text { Rob's salary } & \$ 120,000 \
\text { Rachel's net income from her business } & 130,000 \
\text { Interest (Rob's separate property investments) } & 4,000 \
\text { Interest (Rachel's separate property investments) } & 2,000 \
\text { Dividends (community property) } & 5,000
\end{array}\
\text { Total income is } \$ 261,000
\end{array}$$
a.If Rachel files a separate return, how much income should she report?
b.If Rob and Rachel live in Texas, what should Rachel report as income?

Question

Rachel and Rob are married and living together in California.Their income is: $$\begin{array}{l}
\begin{array} { l r } 
\text { Rob's salary } & \$ 120,000 \
\text { Rachel's net income from her business } & 130,000 \
\text { Interest (Rob's separate property investments) } & 4,000 \
\text { Interest (Rachel's separate property investments) } & 2,000 \
\text { Dividends (community property) } & 5,000
\end{array}\
\text { Total income is } \$ 261,000
\end{array}$$ 
a.If Rachel files a separate return, how much income should she report?
b.If Rob and Rachel live in Texas, what should Rachel report as income?

Quizplus · Accepted Answer

The Answer of Rachel and Rob are married and living together in California.Their income is: $$\begin{array}{l}
\begin{array} { l r } 
\text { Rob's salary } & \$ 120,000 \
\text { Rachel's net income from her business } & 130,000 \
\text { Interest (Rob's separate property investments) } & 4,000 \
\text { Interest (Rachel's separate property investments) } & 2,000 \
\text { Dividends (community property) } & 5,000
\end{array}\
\text { Total income is } \$ 261,000
\end{array}$$ 
a.If Rachel files a separate return, how much income should she report?
b.If Rob and Rachel live in Texas, what should Rachel report as income?

Rachel and Rob Are Married and Living Together in California