Answered: Ethel and Cletus are

Business

Accounting

Ethel and Cletus are

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter26: Tax Practice And Ethics

Section: Chapter Questions

Problem 23P

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Question

Ethel and Cletus are married but have been not speaking to each other for 6 months. Cletus moved out of their house in November of 2022. Although Ethel's CPA has advised her to file as married filing jointly on her 2022 tax return, she refuses to communicate with Cletus to accomplish the filing. So, she files her return as married filing separate and includes the following information on her tax return. Her CPA sent a copy to Cletus to help him in filing his return. Cletus has $50,000 in wages and only $3,500 in itemized deductions. What is Cletus's taxable income for 2022?

Ethel's Tax Information:

Gross Income

For AGI deductions:

AGI

From AGI deductions:

Itemized deductions

Taxable income Ethel):

$80,000

30.000

$50,000

7.000

$43.000

a. $24,100

b. $30,600

c. $37,050

d. $46,500

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