Question

Nathan is married, filing jointly, has a gross income of $59,300.

A) AGI: $59,300, Taxable income: $59,300
B) AGI: $59,300, Taxable income: $58,055
C) AGI: $58,055, Taxable income: $59,300
D) AGI: $58,055, Taxable income: $58,055

Answer 1

The answer is B) AGI: $59,300, Taxable income: $58,055.

Step-by-step explanation:

The answer to the question is B) AGI: $59,300, Taxable income: $58,055.

Adjusted Gross Income (AGI) is the total income before applying deductions and exemptions. In this case, Nathan's gross income is $59,300, so his AGI is also $59,300.

Taxable income is the income on which taxes are calculated. It is calculated by subtracting deductions and exemptions from AGI. The deductions and exemptions for a married person filing jointly are $24,800 (as of 2020). So, Nathan's taxable income is $59,300 - $24,800 = $34,500.

Therefore, the correct answer is B) AGI: $59,300, Taxable income: $58,055.