The Tax Formula for Individuals, Filing Status and TaxComputation (LO 1.3, 1.5, 1.6, 1.7)
Diego, age 28, married Dolores, age 27, in 2017. Their salariesfor the year amounted to $47,230 and they had interest income of$3,500. Diego and Dolores' deductions for adjusted gross incomeamounted to $2,000; their itemized deductions were $11,800; theyclaimed two exemptions on their return; and, they filed a jointreturn.
Table for the standard deduction
| Filing Status | 2017 Standard Deduction | | Single | $ 6,350 | | | Married, filing jointly | 12,700 | | | Married, filing separately | 6,350 | | | Head of household | 9,350 | | | Qualifying widow(er) | 12,700 | |
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Click here to access the tax tables.
a. What is the amount of their adjusted grossincome?
$
b. In order to minimize taxable income, Diegoand Dolores will in the amount of $.
c. What is the amount of their taxableincome?
$
d. What is their tax liability for 2017?
$
