Albert, age 66 and Louise, age 57 will file a joint return for the current tax year. They provided all of the support for their legally blind 29-year old son who had no gross income. They also provided 100% of the support of Louise’s father who is a life-long resident and citizen of Canada. Albert and Louise had adjusted gross income of $72,450 and have no itemized deductions. Compute their taxable income for the year? Adjusted Gross Income? Standard Deduction? Taxable Income?
Albert, age 66 and Louise, age 57 will file a joint return for the current tax year. They provided all of the support for their legally blind 29-year old son who had no gross income. They also provided 100% of the support of Louise’s father who is a life-long resident and citizen of Canada. Albert and Louise had adjusted gross income of $72,450 and have no itemized deductions. Compute their taxable income for the year?
Adjusted Gross Income?
Standard Deduction?
Taxable Income?
The taxable income and the tax filing status determine the tax liability of the taxpayer. The standard deduction reduces the taxable income because it is reduced from the AGI. The standard deduction also depends upon the filing status of the taxpayer.
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