Ellen and Rick are married with one dependent child. They have AGI of $355,250, and itemized deductions consisting of $20,000 state income taxes and $20,000 medical expenses, after applying the 10 percent of AGI limitation.

Compute the following for 2014:

a. Itemized deductions allowed after the phase-out for high-income taxpayers.
b. Exemption deductions (ordinarily $3,950 x 3) after the high-income phase-out.
c. Taxable income.

Question

Ellen and Rick are married with one dependent child. They have AGI of $355,250, and itemized deductions consisting of $20,000 state income taxes and $20,000 medical expenses, after applying the 10 percent of AGI limitation.
​
Compute the following for 2014:
​
a. Itemized deductions allowed after the phase-out for high-income taxpayers.
b. Exemption deductions (ordinarily $3,950 x 3) after the high-income phase-out.
c. Taxable income.

Quizplus · Accepted Answer

The Answer of Ellen and Rick are married with one dependent child. They have AGI of $355,250, and itemized deductions consisting of $20,000 state income taxes and $20,000 medical expenses, after applying the 10 percent of AGI limitation.
​
Compute the following for 2014:
​
a. Itemized deductions allowed after the phase-out for high-income taxpayers.
b. Exemption deductions (ordinarily $3,950 x 3) after the high-income phase-out.
c. Taxable income.

Ellen and Rick Are Married with One Dependent Child