Diego, age 88, married Dolores, age 60, in 2020. Their salaries for the year amounted to $47,230 and they had Social Security Taxable benefits of $ 12,000 and interest income of $3,500. Diego and Dolores’ deductions for adjusted gross income amounted to $2,000, their itemized deductions were $23,900 and they have no dependents.   What is the amount of their adjusted gross income? What is the amount of their itemized deductions or standard deduction? What is the amount of their taxable income? What is their tax liability for 2020?

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Diego, age 88, married Dolores, age 60, in 2020. Their salaries for the year amounted to $47,230 and they had Social Security Taxable benefits of $ 12,000 and interest income of $3,500. Diego and Dolores’ deductions for adjusted gross income amounted to $2,000, their itemized deductions were $23,900 and they have no dependents.

 

  1. What is the amount of their adjusted gross income?
  2. What is the amount of their itemized deductions or standard deduction?
  3. What is the amount of their taxable income?
  4. What is their tax liability for 2020?
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