Taxable income

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SStrawberry

Sep 16, 2009, 09:53 AM

2009 MFJ
AIG=55000
2 childen as dependents,
itemized dededuction $8300

ArcSine

Sep 16, 2009, 10:37 AM

For 2009 the standard deduction for MFJ is 11,400; the personal exemption amount is 3,650 each. There are some potential modifications to the standard deduction, though, for certain special issues (real estate losses; new vehicle purchases). Check the IRS website for more details.

morgaine300

Sep 16, 2009, 07:23 PM

OK... considering this is in the homework forum...

If someone is married and has 2 children, they have 4 exemptions. You need to use the exemption amount given in your book, because they do not usually match the real figures. (Unless you've been told to get the real numbers from the IRS.)

Everyone is allowed the standard deduction. Itemizing deductions is about seeing if you have more than the standard deduction everyone is allowed. Therefore, you are to compare the deductions they list in the problem with the standard deduction, and use whichever one is higher.

Deduct these two things off AGI to get taxable income.