Eugene and Velma are married.For 2017,Eugene earned $25,000 and Velma earned $30,000.They have decided to file separate returns and are each entitled to claim one personal exemption.They have no deductions for adjusted gross income.Eugene's itemized deductions are $11,200 and Velma's are $4,000.Assuming Eugene and Velma do not live in a community property state and Eugene deducts the greater of the standard deduction or itemized deductions,what is Eugene's taxable income?

Question

Quizplus · Accepted Answer

Eugene's taxable income is calculated by subtracting the greater of the standard deduction or itemized deductions and the personal exemption from his gross income. For 2017, the standard deduction for married filing separately is $6,350, and the personal exemption is $4,050. Eugene's itemized deductions are $11,200, which is greater than the standard deduction. Therefore, his taxable income is $25,000 - $11,200 - $4,050 = $9,750.

Eugene and Velma Are Married