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QuizMultiple Choice

Tax Returns

Question 1 • FL-2102373-Personal Finance and Money Management Honors

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?

Answer
$
$53,290
$
$44,940
$
$53,026
$
$61,640

Explanation

Add the itemized deductions: $3,752 + $3,375 + $959 = $8,086, which is less than the $8,350 standard deduction, so use the standard deduction. The two exemptions total 2 × $3,650 = $7,300. Subtract both amounts from adjusted gross income: $68,676 − $8,350 − $7,300 = $53,026, so the total taxable income is $53,026.

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