The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8) Diego, age 28, married Dolores, age 27, in 2021. Their salaries for the year amounted to $53,645 and they had interest income of $2,640. Diego and Dolores' deductions for adjusted gross income amounted to $3,830; their itemized deductions were $15,300, and they have no dependents. Their 2021 EIP was equal to the 2021 RRC. Table for the standard deduction Filing Status Standard Deduction Single $12,550 Married, filing jointly 25,100 Married, filing separately 12,550 Head of household 18,800 Qualifying widow(er) 25,100
The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8) Diego, age 28, married Dolores, age 27, in 2021. Their salaries for the year amounted to $53,645 and they had interest income of $2,640. Diego and Dolores' deductions for adjusted gross income amounted to $3,830; their itemized deductions were $15,300, and they have no dependents. Their 2021 EIP was equal to the 2021 RRC. Table for the standard deduction Filing Status Standard Deduction Single $12,550 Married, filing jointly 25,100 Married, filing separately 12,550 Head of household 18,800 Qualifying widow(er) 25,100
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 26P
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Transcribed Image Text:a. What is the amount of their adjusted gross income?
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b. In order to minimize taxable income, Diego and Dolores will take the standard deduction
- x in the amount of $
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c. What is the amount of their taxable income?
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d. What is their tax liability for 2021?
Transcribed Image Text:Problem 1-5 (Algorithmic)
The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8)
Diego, age 28, married Dolores, age 27, in 2021. Their salaries for the year amounted to $53,645 and they had interest income
of $2,640. Diego and Dolores' deductions for adjusted gross income amounted to $3,830; their itemized deductions were
$15,300, and they have no dependents. Their 2021 EIP was equal to the 2021 RRC.
Table for the standard deduction
Filing Status
Standard Deduction
Single
$12,550
Married, filing jointly
25,100
Married, filing separately
12,550
Head of household
18,800
Qualifying widow(er)
25,100
Click here to access the tax tables.
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