Oscar and Mary have no dependents and file a joint income tax return for 2016. They have adjusted gross income of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2016 income tax return?

Question

Quizplus · Accepted Answer

To calculate taxable income, we need to subtract itemized deductions from adjusted gross income.

Taxable income = Adjusted gross income - Itemized deductions
Taxable income = $140,000 - $30,000
Taxable income = $110,000

Therefore, the answer is (B) $101,900.

Oscar and Mary Have No Dependents and File a Joint