Hansaben Carl, age 42, is married and has three children. In preparing to go to his accountant, he determines that he has $63, 100 of salary income and $250 in dividends. He contributes $4,000 to a Roth IRA and has $6,800 of itemizeddeductions. His wife has no income. What is the taxable income on their 2013 joint return?

Taxable income on a joint return combines the incomes of both spouses, accounting for salary,…

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What is the taxable income on their 2013 joint return?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter8: Taxation Of Individuals

Section: Chapter Questions

Problem 29P: Arthur and Cora are married and have 2 dependent children. They have a gross income of 95,000. Their...

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Concept explainers

Capital Gain

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that basis, the rate of taxation is decided if it is 20%, 15% or according to the tax brackets. The rate of taxation differs in the case of equity or debt, whether long or short term. The capital gain can be adjusted from capital loss to arrive at a net capital gain. The amount of gains and the exemption has to be reported in the tax return filed in the financial year in which the asset was transferred. The tax return can be filed quarterly, monthly, semi-annually or annually.

Question

Hansaben

Carl, age 42, is married and has three children. In preparing to go to his accountant, he determines that he has $63, 100 of salary income and $250 in dividends. He contributes $4,000 to a Roth IRA and has $6,800 of itemized
deductions. His wife has no income. What is the taxable income on their 2013 joint return?

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