Compute the taxable income for 2020 under each of the following circumstances: Jim is married and files a joint return. Jim and his wife have two dependent children. They have adjusted gross income of $30,000 and itemized deductions of $24,500. Jim is single with no dependents. His adjusted gross income is $50,000 with itemized deductions of $10,800. Jim is a full-time college student under 24 supported by his father. Jim earned $2,600 from a part-time job and had $500 of interest income. His itemized deductions were $600.

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 26P
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Compute the taxable income for 2020 under each of the following circumstances:

  1. Jim is married and files a joint return. Jim and his wife have two dependent children. They have adjusted gross income of $30,000 and itemized deductions of $24,500.
  2. Jim is single with no dependents. His adjusted gross income is $50,000 with itemized deductions of $10,800.
  3. Jim is a full-time college student under 24 supported by his father. Jim earned $2,600 from a part-time job and had $500 of interest income. His itemized deductions were $600.
  4. Jim is married but files separately and claims two dependent children. His adjusted gross income is $65,000 and he claims $12,900 of itemized deductions. Jim’s wife also itemizes on her return.
  5. Assume the same situation as in (d), but Jim’s itemized deductions are only $10,900.
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