Ellen and Rick Are Married with One Dependent Child

question 21

Essay

Ellen and Rick are married with one dependent child.They have AGI of $350,000,and itemized deductions consisting of $20,000 state income taxes and $20,000 medical expenses,after applying the 10 percent of AGI limitation.
Compute the following for 2013:
a.Itemized deductions allowed after the phase-out for high-income taxpayers.
b.Exemption deductions ordinarily $3,900 x 3)after the high-income phase-out.
c.Taxable income.

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Definitions:

Upper Zones

Refers to regions or layers located towards the top or surface of an area, often pertaining to atmospheric layers, geological strata, or aquatic depths.

Fertile Ecosystems

Ecosystems with high levels of productivity and biodiversity, capable of supporting extensive food webs and numerous species.

Flowing-Water Ecosystem

A river or stream ecosystem.

River

A natural flowing watercourse, usually freshwater, flowing towards an ocean, sea, lake, or another river.