Sean and Martha Are Both Over Age 65 and Martha

question 61

Essay

Sean and Martha are both over age 65 and Martha is considered blind by tax law standards.Their total income in 2015 from part-time jobs and interest income from a bank savings account is $60,000.Their itemized deductions are $12,000.
Required: Compute their taxable income.

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Definitions:

Workers

Individuals engaged in any form of productive activity, typically in exchange for wages or salaries.

Corporate Profits Tax

A levy placed on the profit of corporations, calculated as the net income of the firm after deducting costs and expenses.

Individual Income Tax Rate

The percentage of an individual’s income that is paid to the government as tax.

Partnerships

A type of business organization where two or more individuals own and operate the business, sharing profits and losses.