Theodore, age 74, and Maureen, age 59, are married taxpayers with two dependents. Their adjusted gross income for the 2020 tax year is $43,600, and they have itemized deductions of $7,800. Determine the following for Theodore and Maureen's 2020 income tax return: ​ a. The greater of the amount of their standard deduction or their itemized deductions b. Their taxable income

SWFT Comprehensive Vol 2020
43rd Edition
ISBN:9780357391723
Author:Maloney
Publisher:Maloney
Chapter3: Computing The Tax
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Problem 17DQ
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Theodore, age 74, and Maureen, age 59, are married taxpayers with two dependents. Their adjusted gross income for the 2020 tax year is $43,600, and they have itemized deductions of $7,800. Determine the following for Theodore and Maureen's 2020 income tax return:

a.

The greater of the amount of their standard deduction or their itemized deductions

b.

Their taxable income

Expert Solution
Step 1: Definition

Taxable income:

Taxable income refers to the gross income less any allowable deductions of a taxpayer. It is an amount of income used to calculate how much tax an individual or a company owes to the government for a specific tax year.

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