Solved Bianca and Dave are a married couple filing a joint

Question:

Bianca and Dave are a married couple filing a joint tax return. They have a combined gross income of $81,031 and claim four exemptions. They can make an adjustment of $2,914 for business expenses, an adjustment of $1,939 for business losses, a deduction of $4,140 for medical expenses, an adjustment of $4,825 for contributions to their retirement fund, and a deduction of $2,420 for charitable donations. If exemptions are worth $3,650 apiece and the standard deduction for a joint return is $8,350, what is their total taxable income?

A. $50,193

B. $41,843

C. $48,403

D. $52,793

Answer:

Total taxable income = Gross income – Deductions – Adjustments – Exceptions

Gross income = $81,031

Deductions = $4,140 + $2,420

= $6,560

Adjustments = $2,914 + $1,939 + $4,825

= $9,678

Exceptions = $3,650 * 4

= $14,600

Total taxable income = $81,031 – $6,560 – $9,678 – $14,600

= $50,193 Answer: A. $50,193