Answer:
The question is not complete.
Here is the complete part:
Table for the standard deduction
Filing Status 2018 Standard Deduction
Single $ 12,000
Married, filing jointly $24,000
Married, filing separately $12,000
Head of household $18,000
Qualifying widow(er) $24,000
If an amount is zero, enter "0".
a. What is the amount of their adjusted gross income?
$
b. What is their deduction for personal exemptions?
$
c. What is the amount of their taxable income?
$
Here are the answers:
a. Adjusted Gross Income = $88,700
b. Personal exemptions = $0
c. Taxable Income = $64,000
Explanation:
a .Adjusted Gross Income is calculated by adding income from various sources and subtracting any specific deductions.
For Frank and Joyce, the adjusted gross income is :
$84,800 + $3,900 - $0 (no deductions for adjusted gross income) = $88,700.
b. Personal exemptions equals is $0 because it has been phased out in 2017.
c. The taxable income is derived by deducting standard deduction or itemized deductions (whichever is higher) from adjusted gross income.
Taxable income = Adjusted gross income - deductions ( standard or item-whichever is higher).
The standard deductions of $24,000 for married, filling jointly is lower than their itemized deductions, so the latter will be used.
Hence, the taxable income = $88,700 - $24,700
Taxable income = $64,000
