In 2020, Robert and Amanda are married. Robert earns $75,000 from his job as an...
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In 2020, Robert and Amanda are married. Robert earns $75,000 from his job as an accountant. Amanda earns $50,000 per year as a Florist. Roberts grandmother gave him a gift of $18,000 in cash, because she loves him so much.Amanda owns a 15% interest in Flowers to Go Partnership. Flowers to Go earned $100,000 in operating income during the year, it also paid a cash distribution of $10,000 to Amanda during the year.Robert has $4,000 of interest from City of Boulder Bonds. They have a joint bank account that earned $50 in interest for the year. Amanda was in a car accident, that was not her fault. She was awarded $150,000 in compensatory damages.
They also have the following expenses during the year:
Medical Expenses: $5,000 State & Local Taxes: $14,000
Personal Property taxes on their vehicles: $400
Federal Income Tax Payments: $6,000
Cash Charitable Contributions: $25,000
The standard deduction amounts for 2020 are listed below:
Single: $12,400 Head of Household: $18,750
Married Filing Jointly: $24,800
Calculate the appropriate amounts below for Robert & Amanda:
Gross Income, Adjusted Gross Income, and Taxable Income
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