Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2019, Ed and Jane realized the following items of income and expense:ItemAmountEd's Salary$35,000 Jane's Salary 70,000 Municipal bond interest income 400 Qualified business income 1,000 Alimony paid (for AGI deduction) (7,000)Real property tax (from AGI deduction) (10,000)Charitable contributions (from AGI) (15,000) They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2019 standard deduction amount for MFJ taxpayers is $24,400.What is the couple's adjusted gross income?
What will be an ideal response?
$99,000, see calculations below.
| Description | Amount | Explanation | |||
| (1) | Ed's salary | $ | 35,000 | ||
| (2) | Jane's salary | 70,000 | |||
| (3) | Qualified business income | 1,000 | |||
| (4) | Municipal bond interest income | 0 | Municipal bond interest is excluded from gross income | ||
| (5) | Gross income | 106,000 | Sum (1) - (3) | ||
| (6) | Alimony paid | (7,000) | For AGI deduction | ||
| (7) | Adjusted gross income | 99,000 | (5) + (6) | ||
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