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Find the taxable income of a married couple with one child, who has a combined income of $23,000.

1 Answer

4 votes

Answer:

Thus the taxable income is less than Zero.

Explanation:

Given

Total income = $23,000

Number of children = 1

To find the taxable income, following formula is used by the U.S. government

taxable income = total income - exemption deduction - standard deduction

The exemption deduction as set by the U.S. government for a U.S couple with one child = $11,700

The standard deduction as set by the U.S. government for a U.S couple with one child = $12,200

Thus to find the taxable income we use the above formula

taxable income = total income - exemption deduction - standard deduction

= $23,000 - $11,700 - $12,200

= -$900

Thus the taxable income is less than Zero.

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