Problem I: 2-30
Computation of Taxable Income: The following information relates to Tom, a single taxpayer, age 18
Salary $1800
Interest income 1,600
Itemized deduction 600
- Compute Tom’s taxable income assuming he is self-supporting.
- Compute Tom’s taxable income assuming he is dependent of his parent.
Problem I: 2-31
Joint versus Separate Returns: Carl and Carol have salaries of $ 1,400 and $22,000, respectively. Their itemized deductions total $8,500. They are married and both are under age 65.
- Compute their taxable income assuming they file jointly.
- Compute their taxable income assuming they file separate returns and the Carol claims all of the itemized deductions.
Problem I: 2-34
Dependency Exemptions: John and Carole file a joint return and have three children: Jack, age 23; David, age 20; and Kristen, age 15. All three children live at home the entire year.