Question

Oscar and Mary have no dependents and file a joint income tax return for 2018. They have adjusted gross income (all wages) of $140,000 and itemized deductions of $30,000. What is the amount of taxable income that Oscar and Mary must report on their 2018 income tax return?

a. $93,600
b. $140,000c. $110,000
d. $116,000
e. $102,000

Answer 1

$101,900

Rationale:

($140,000 - $30,000 - $8,100) Two exemptions at $4,050 each.

Step-by-step explanation: