Answer:
a. Drew and Meg are married and filing a married joint return. The standard deduction of a married joint return is $24,400 but it is lower
AGI $125,000
Less: Itemized deduction <u>$27,000</u>
Taxable income <u>$98,000</u>
b. Sybil's filing status is head of household. The Standard deduction for head of household is $18,000 in 2018 which is higher than itemized deductions of $8,000.
AGI $80,000
Less: Itemized deduction <u>$18,000</u>
Taxable income <u>$62,000</u>
c. Scott is a surviving spouse. The standard deduction will be equal to that of married filling joint return which is $24,400
AGI $75,000
Less: Itemized deduction <u>$24,400</u>
Taxable income <u>$50,600</u>
d. Amelia is an abandoned spouse. She can file as head of household. The standard deduction for the year 2018 is $18,000 which is higher than itemized deductions of $10,650.
AGI $58,000
Less: Itemized deduction <u>$18,000</u>
Taxable income <u>$40,000</u>
e. Dale is divorced and filing status is head of household. The standard deduction for the year 2018 is $18,000 which is higher than itemized deductions of $9,900
AGI $64,000
Less: Itemized deduction <u>$18,000</u>
Taxable income <u>$46,000</u>
