Question

Jimmy and Loren are married and file a joint return. The are both in the military, are residents of Oregon, and lived in Oregon all year. Jimmy received $7400 in active duty pay. Loren received $2600 in active duty pay. Their subtraction in Oregon is:

a. $0.
b. $6000.
c. $8600.
d. $10,000.

Answer 1

The subtraction for Jimmy and Loren in Oregon is $6,000.

Step-by-step explanation:

To determine the subtraction for Oregon, we need to consider the subtraction amount for active duty pay. The subtraction for active duty pay is the lesser of the total active duty pay or $6,000. In this case, Jimmy received $7,400 in active duty pay and Loren received $2,600 in active duty pay. Therefore, their subtraction in Oregon would be $6,000.