Question

Imagine a family with three people -- a husband, wife, and one young child. For their taxes, they are filing jointly. The household's adjustable gross income was $50,000 in 2017. After accounting for their personal exemptions and taking the standard deduction, their taxable income (to the nearest thousand) would have been about ____.

Answer 1

Answer:

$25,000

Explanation:

the standard deduction (2017) for a married couple was $12,700 and the personal exemptions for three people were $12,150. The couple's taxable income = $50,000 - $12,700 - $12,150 = $25,150.

*The Tax Cuts and Job Act of 2017 eliminated the personal exemptions but raised the standard deductions.