Question

Eugene and Velma are married. For 2020, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Velma's itemized deductions are $14,200 so she is going to itemize. Eugene's itemized deductions are $4,000. Assuming Eugene and Velma do not live in a community property state, what is Eugene's taxable income

Answer 1

$21,950

Step-by-step explanation:

Based on the information given Assuming both of them do not live in a community property state Eugene's taxable income will be calculated as:

Income Earned (Velma) $30,000

Less Eugene's itemized deductions ($4,000)

Less Standard deduction ($4,050)

Eugene's taxable income$21,950

Therefore Eugene's taxable income will be $21,950