Samuel, married to John, with two children as dependents, has 2020 wages of $60,000, paid alimony of $3,000 pursuant to divorce decree from 2015 with his former spouse – Mary- and has taxable exempt interest income of $8,000, and a $22,000 0%/15%/20% net long-term capital gain. John doesn’t work (stays home with the two kids, both were under age 13 in 2020). The couple can’t itemize (they rent) and take the standard deduction. Sam is age 38. Josh 36. What is the 2020 taxable income ? Ignore any tax credits but please compute their tax due for 2020.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Samuel, married to John, with two children as dependents, has 2020 wages of $60,000, paid alimony of $3,000 pursuant to divorce decree from 2015 with his former spouse – Mary- and has taxable exempt interest income of $8,000, and a $22,000 0%/15%/20% net long-term capital gain. John doesn’t work (stays home with the two kids, both were under age 13 in 2020). The couple can’t itemize (they rent) and take the standard deduction. Sam is age 38. Josh 36. What is the 2020 taxable income ? Ignore any tax credits but please compute their tax due for 2020.

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