Final answer:
Luke and Val's taxable income for 2022 is $21,300. This is calculated by subtracting their enhanced standard deduction of $28,700 (which includes additional deductions for age and blindness) from their AGI of $50,000, considering that their itemized deductions are lower than the standard deduction.
Step-by-step explanation:
To calculate the taxable income for Luke and Val, who file a joint return, with Luke being over 65 and Val being legally blind, we need to consider their adjusted gross income (AGI), standard or itemized deductions, and any additional deductions or credits they may qualify for due to age or blindness. For 2022, the standard deduction for a married couple filing jointly is $25,900. However, Luke and Val can apply an additional standard deduction because Luke is over 65, which is $1,400 for tax year 2022, and Val is legally blind, which is another $1,400. Therefore, their total standard deduction would be $25,900 + $1,400 + $1,400 = $28,700.
When a taxpayer itemizes deductions, they can deduct amounts like mortgage interest, charitable contributions, and property taxes. Luke and Val's itemized deductions are $14,000 for mortgage interest, $4,000 for charitable contributions, and $10,000 for property taxes, totaling $28,000. They should compare the itemized deductions to the standard deductions to see which is greater. Since their itemized deductions ($28,000) are less than their enhanced standard deduction ($28,700), they should take the standard deduction. Subtracting the standard deduction from their AGI of $50,000 gives us:
Taxable Income = $50,000 - $28,700 = $21,300.
Therefore, the correct answer is b. $21,300, which is their taxable income for the year 2022.