Nick and nora are married and have three children in college. they have an adjusted gross income of 47,400. if their standard deduction is 12,600 itemized deductions are 14,200 and they get an exemption of 4000 for each adult and each dependent what is their taxable income
Taxable income is $16600 .
Nick and Nora are married and have three children in college.
They have an adjusted gross income of $47,400.
If their standard deduction is $12,600 itemized deductions are $14,200 and they get an exemption of $4000 for each adult and each dependent .
Total exemption amount = Total number of adult and each dependent × Amount of exemption .
= 5 × 4000
= $ 20000
Taxable income = Adjusted gross income - Standard deduction - Itemized deductions - Total exemption amount
= $47400 - $12600 - $ 14200 - $4000
= $ 47400 - $ 30800
= $ 16600
Therefore the taxable income is $16600 .
We know that Nick and Nora are married and have three children who are studying in college.
Also, their gross income = $47,400
Standard deduction = $12,600
Itemized deductions = $14,200
Exemption = $4,000 for each adult and each dependent
⇒ Exemption = 4,000 * 5
⇒ Exemption = $20,000
Taxable Income = Gross Income - Standard Deduction - Itemized Deduction - Exemptions
⇒ Taxable Income = 47,400 - 12,600 - 14,200 - 20,000
⇒ Taxable Income = $600
Hence, their taxable income is $600