Answer:
Option "B" is the correct answer to the following statement.
Explanation:
Given:
Total Adjusted Gross Income of Fred and Anna = $50,000.
In this situation, Fred and Anna should either choose a standard deduction or a comprehensive deduction.
Amount of Standard Deduction
Married File a joint return = $24,000
If an applicant is jointly taxing coupled and partner is over 65 years of age, they may raise the deduction by $1,300.
If an applicant is jointly taxing coupled and one partner is blind, they may Also raise the deduction by $1,300.
So, Total standard deduction = $24,000 + $1,300 + $1,300 = $26,600
Amount of Comprehensive Deduction
Given:
Interest = $13,000
Charitable contribution = $1,500
Property Deduction = $11,000 (Maximum of $10,000 is allowed) = $10,000
Total deduction = $13,000 + $1,500 + $10,000 = $24,500
So , Fred and Anna choose Standard Deduction
Total taxable income = $50,000 - $26,600 = $23,400
