The information that follows applies to the current year for Revis and Patrica,a married couple. Based on the above information,what is Revis and Patrica 's taxable income?

Question

The information that follows applies to the current year for Revis and Patrica,a married couple.  Based on the above information,what is Revis and Patrica 's taxable income?

Quizplus · Accepted Answer

To determine taxable income, we need to subtract the total deductions from the adjusted gross income. 
Here, the adjusted gross income is $157,500 (salaries + interest income). 
The deductions are: 
- Standard deduction = $24,000 
- Personal exemptions = $0 (as they are not applicable for the current year) 
- State and local taxes = $5,250 
- Mortgage interest = $1,500 
- Charitable contributions = $3,000 
Total deductions = $33,750 
Taxable income = Adjusted gross income - Total deductions 
Taxable income = $157,500 - $33,750 = $123,750 
Therefore, the correct choice is (C) $128,250 (there may be a typo in the answer options provided).

The Information That Follows Applies to the Current Year for Revis