Question: Problem 1-5 (Algorithmic) The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8) Diego, age 28, married

Problem 1-5 (Algorithmic) The Tax Formula for Individuals, Filing Status and Tax

Problem 1-5 (Algorithmic) The Tax Formula for Individuals, Filing Status and Tax Computation, The Standard Deduction (LO 1.3, 1.5, 1.8) Diego, age 28, married Dolores, age 27, in 2020. Their salaries for the year amounted to $53,645 and they had interest income of $2,640. Diego and Dolores deductions for adjusted gross income amounted to $3,830; their itemized deductions were $17,175, and they have no dependents. Table for the standard deduction Filing Status Standard Deduction Single $12,400 Married, filing jointly 24,800 Married, filing separately 12,400 Head of household 18,650 Qualifying widow(er) 24,800 Click here to access the tax tables. a. What is the amount of their adjusted gross income? 52,455 v Feedback b. In order to minimize taxable income, Diego and Dolores will take the standard deduction in the amount of $ 24,800 Feedback c. What is the amount of their taxable income? $27,655 d. What is their tax liability for 20207 x

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