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The Tanakas Filed Jointly in 2018

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The Tanakas filed jointly in 2018. Their AGI is $120,000. They reported $10,000 of qualified business income and $26,000 of itemized deductions. They also have two dependent qualifying children. The 2018 standard deduction amount for MFJ taxpayers is $24,000. What is the total amount of from AGI deductions they are allowed to claim on their 2018 tax return?


Definitions:

Identical Firms

Companies within a market that produce homogeneous products or services with no distinct differences from the consumer's perspective.

Market Supply Curve

The market supply curve is a graphical representation that shows the relationship between the quantity of goods that producers are willing to sell and the price of these goods.

Competitive Market

A market structure in which many firms offer products or services that are similar, allowing consumers to have choices, leading to lower prices due to competition.

Long-Run

A period in which all factors of production and costs are variable, allowing for full adjustment to any changes.

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