The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.7) Diego, age 28, married Dolores, age 27, in 2018. Their salaries for the year amounted to $80,000 and they had interest income of $1,900. Diego and Dolores' deductions for adjusted gross income amounted to $6,100; their itemized deductions were $10,050, and they have no dependents.   Filing Status 2018 Standard Deduction Single $ 12,000   Married, filing jointly 24,000   Married, filing separately 12,000   Head of household 18,000   Qualifying widow(er) 24,000      What is the amount of their adjusted gross income?   In order to minimize taxable income, Diego and Dolores will take the standard deductionin the amount of $.  What is the amount of their taxable income? $  What is their tax liability for 2018? $

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Chapter1: Financial Statements And Business Decisions
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The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.7)

Diego, age 28, married Dolores, age 27, in 2018. Their salaries for the year amounted to $80,000 and they had interest income of $1,900. Diego and Dolores' deductions for adjusted gross income amounted to $6,100; their itemized deductions were $10,050, and they have no dependents.

 

Filing Status

2018 Standard Deduction

Single

$ 12,000

 

Married, filing jointly

24,000

 

Married, filing separately

12,000

 

Head of household

18,000

 

Qualifying widow(er)

24,000

 

 

  1.  What is the amount of their adjusted gross income? 
  2.  In order to minimize taxable income, Diego and Dolores will take the standard deductionin the amount of $.
  3.  What is the amount of their taxable income? $
  4.  What is their tax liability for 2018? $
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