QUICK can Someone answer this? Bob and Allie Katz are a married couple with thre
ID: 2531580 • Letter: Q
Question
QUICK can Someone answer this?
Bob and Allie Katz are a married couple with three children. Their wages for 2015 totaled $125,400 with an additional $200 in interest income. They have calculated their itemized deductions to be $23,700 and also realized a short-term capital gain of $2,100. They sold stock for $13,000 in 2015 which had been purchased in 2007 for $10,000. For the year, Bob and Allie have paid $24,600 in federal taxes. They are also eligible for a tax credit of $500. Combined, they contributed $10,000 into their Roth IRA’s. What is their taxable income?
Explanation / Answer
Wages $125,400.00 Interest Income $200.00 Short term Capital Gain 2100 Long Term Capital Gain 3000 Gross Income $130,700.00 Less: Itemized Deduction $23,700.00 Adjusted gross income $107,000.00 Personal Exemption (5 x 4150 ) $20,750.00 Taxable Income @ 2018 $86,250.00