90.2K

Verified Solution

Link Copied!

3. Cho3 Financial Planning Exercise 5 eBook Chapter 3 Financial Planning Exercise 5 Calculating taxable income for a married couple filing jointly Freya and Sebastian Hunter are married and have one child. Sebastian is putting together some figures so he can prepare the Hunters' joint 2018 ta return. So far, he's been able to determine the following concerning income and possible deductions: Total unreimbursed medical expenses incurred Gross wages and commissions earned IRA contribution Mortgage Interest paid Capital gains realized on assets held less than 12 months Income from limited partnership $1,155 50,840 5,000 5,200 1,400 200 Ch 03: End-of-Chapter Problems - Preparing Your Taxes 50,840 5,000 5,200 1,400 Gross wages and commissions earned IRA contribution Mortgage interest paid Capital gains realized on assets held less than 12 months Income from limited partnership Interest paid on credit cards Qualified dividend Income earned Sales taxes paid Charitable contributions made Capital losses realized Interest paid on a car loan Social Security taxes paid Property taxes paid State income taxes pald 200 400 610 2,470 1,150 3,450 570 2,700 650 1,600 Given this information, determine the amount of the available itemized deductions. How much taxable income will the Hunters have in 2018? (Note: Assume that Sebastian is not covered by a pension plan where he works, his child qualifies for the child tax credit, and the standard deduction of $24,000 for married filing jointly applies.) Do not round your intermediate computations. $

Answer & Explanation Solved by verified expert

See Answer