Sean and Martha are both over age 65 and Martha is considered blind by tax law standards. Their total income in 2018 from part-time jobs and interest income from a bank savings account is $80,000. Their itemized deductions are $25,000.Required: Compute their taxable income.

What will be an ideal response?


Salary & interest$60,000
Less:
Standard deduction [$24,000 + (3 × 1,300)](27,900)
Taxable income$32,100

The standard deduction is increased because of age for both and blindness for Martha.

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