Jack and Jill are married. This year Jack earned $72,000 and Jill earned $80,000 and they received $4,000 of interest income from a joint savings account. How much gross income would Jack report if he files married-filing-separate from Jill?
A) $72,000 if they reside in a common law state.
B) $74,000 if they reside in a community property law state.
C) $76,000 if they reside in a common law state.
D) $78,000 if they reside in a community property law state.
E) None of the abovE.In a community property state Jack is taxed on ½ of his separate income ($36,000) plus ½ of Jill's separate income ($40,000) plus ½ of joint income ($2,000) .In a common law state, Jack is taxed on his separate income ($72,000) plus ½ of joint income ($2,000) .
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