robert and anne, a married couple filing jointly, have an adjusted gross income of $68,676. they claim two…

robert and anne, a married couple filing jointly, have an adjusted gross income of $68,676. they claim two exemptions, and can deduct $3,752 for charitable donations, $3,375 for interest on their mortgage, and $959 from city income tax. if the standard deduction for a married couple filing jointly is $8,350 and exemptions are worth $3,650 apiece, what is their total taxable income? $53,290 $53,026 $44,940 $61,640

robert and anne, a married couple filing jointly, have an adjusted gross income of $68,676. they claim two exemptions, and can deduct $3,752 for charitable donations, $3,375 for interest on their mortgage, and $959 from city income tax. if the standard deduction for a married couple filing jointly is $8,350 and exemptions are worth $3,650 apiece, what is their total taxable income? $53,290 $53,026 $44,940 $61,640

Answer

Explanation:

Step1: Calculate total exemptions

Since they claim two exemptions and each is worth $3,650, the total exemption amount is $3,650\times2 = 7300$.

Step2: Calculate total deductions

The total of item - ized deductions is $3,752+3,375 + 959=8086$. Since the standard deduction for a married couple filing jointly is $8,350$ and $8350>8086$, we use the standard deduction.

Step3: Calculate taxable income

Taxable income = Adjusted gross income - Total exemptions - Standard deduction. So, it is $68676-7300 - 8350=53026$.

Answer:

$53,026$