Answer:
Total deductions available for Marc and Michelle are $24750.
Marc and Michelle's taxable income is $47750.
Further Explanation:
Income Tax refers to the additional fee imposed on an individual’s earnings that must be paid to the government. Taxable income is derived by aggregating all incomes and factoring in all claimable deductions from an individual’s income.
Here’s how to calculate the overall deductions available for Marc and Michelle:
Total Deduction Available
= The highest of Standard Deduction for MJF and Itemized Deduction + Personal and Dependency Exemptions
= Maximum of $12600 and $6000 + $12150 ($4050×3)
= $12600 + $12150
=$24750.
Consequently, Marc and Michelle's total deductions amount to $24750.
Their Gross Income
= Marc's Salary + Michelle's Salary + Interest Yield from Corporate Bonds
= $64000 + $12000 + $500
= $76500.
Total Taxable Income of Marc and Michelle
= Gross Income – Qualified Moving Expenses – Alimony Paid – Total Deductions
= $76500 - $2500 - $1500 - $$24750
= $47750.
Thus, Marc and Michelle's entire taxable income is $47750.
Learn More:
1. Learn more about the tax on the profit from selling fixed assets
2. Learn more about personal tax
3. Learn more about the role of money
Answer details:
Grade: Senior School
Subject: Taxation
Chapter: Income Tax
Keywords: Taxable income, Marc and Michelle, Deductions, salary income, earned, corporate bond interest, interest on municipal bond, standard deductions, US tax brackets.
happy to help ya:)
