Question

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?

Answer 1

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