bianca and dave are a married couple filing a joint tax return. they have a combined gross income of $81,031…

bianca and dave are a married couple filing a joint tax return. they have a combined gross income of $81,031 and claim four exemptions. they can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. if exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income? a. $50,193 b. $41,843 c. $48,403 d. $52,793 please select the best answer from the choices provided

bianca and dave are a married couple filing a joint tax return. they have a combined gross income of $81,031 and claim four exemptions. they can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. if exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income? a. $50,193 b. $41,843 c. $48,403 d. $52,793 please select the best answer from the choices provided

Answer

Explanation:

Step1: Calculate total exemptions

Since they claim four exemptions worth $3,650 each, the total exemption amount is $3650\times4 = 14600$.

Step2: Calculate total adjustments and deductions

The total of adjustments and deductions is $2914 + 1939+4140 + 4825+2420=16238$.

Step3: Calculate taxable income

The formula for taxable income is: Taxable income = Gross income - Total exemptions - Total adjustments and deductions - Standard - deduction. The gross income is $81031$, total exemptions are $14600$, total adjustments and deductions are $16238$ and the standard - deduction is $8350$. Taxable income=$81031-14600 - 16238-8350$ $81031-(14600 + 16238+8350)=81031 - 39188=41843$.

Answer:

B. $41,843$