Rod, age 50, and Ann, age 49, are married taxpayers who file a joint return for 2016. They have gross income of $150,700. Their deductions for adjusted gross income are $5,100 and they have itemized deductions of $12,000, consisting of $7,000 in state income taxes and $5,000 in mortgage interest expense. If they claim two personal exemptions and no dependency exemptions for 2016, calculate the following amounts:

a.Their adjusted gross income
b.The greater of the amount of their standard deduction or their itemized deductions
c.Their taxable income

Question

Rod, age 50, and Ann, age 49, are married taxpayers who file a joint return for 2016. They have gross income of $150,700. Their deductions for adjusted gross income are $5,100 and they have itemized deductions of $12,000, consisting of $7,000 in state income taxes and $5,000 in mortgage interest expense. If they claim two personal exemptions and no dependency exemptions for 2016, calculate the following amounts:
​
a.Their adjusted gross income
b.The greater of the amount of their standard deduction or their itemized deductions
c.Their taxable income

Quizplus · Accepted Answer

The Answer of Rod, age 50, and Ann, age 49, are married taxpayers who file a joint return for 2016. They have gross income of $150,700. Their deductions for adjusted gross income are $5,100 and they have itemized deductions of $12,000, consisting of $7,000 in state income taxes and $5,000 in mortgage interest expense. If they claim two personal exemptions and no dependency exemptions for 2016, calculate the following amounts:
​
a.Their adjusted gross income
b.The greater of the amount of their standard deduction or their itemized deductions
c.Their taxable income

Rod, Age 50, and Ann, Age 49, Are Married Taxpayers