Jack, age 66, and Jill, age 59, are married and file a joint return. During the year they received: o $262,000 in wages o $2,000 in interest on their savings account o $1,500 in interest from City of Boston Bonds They paid: o $3,000 in student loan interest o $8,000 in mortgage interest o $5,000 in charitable donations o $3,000 in real estate taxes o 4,000 in state income taxes They support Jack’s mother since she has no income. She lives in an assisted living center in town because she is legally blind. They also support their daughter Lauren who lives with them while she goes to school full-time. She is 26 years old and has a part-time job waitressing once a week where she earns $3,000. What is Jack and Jill’s taxable income and tax due/(refund)?

Answer rating: 100% (QA)

Ans Calculating taxable income of married couple Jack and Jill filing jointly Gross Income Working Note1 265500 Less deductions Working Note2 3000 Adj... View the full answer