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12 September, 11:48

LO 1.3 Jason and Mary are married taxpayers in 2018. They are both under age 65 and in good health. For 2018 they have a total of $41,000 in wages and $700 in interest income. Jason and Mary's deductions for adjusted gross income amount to $5,000 and their itemized deductions equal $14,000. They have two children, ages 32 and 28, that are married and provide support for themselves. What is the amount of Jason and Mary's adjusted gross income?

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  1. 12 September, 13:55
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    Answer: $36,700

    Explanation:

    Given that,

    Wages = $41,000

    Interest income = $700

    Jason and Mary's deductions = $5,000

    Itemized deductions = $14,000

    Adjusted gross income = Wages + Interest income - Jason and Mary's deductions

    = $41,000 + $700 - $5,000

    = $36,700
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