The Inouyes Filed Jointly in 2020

question 92

Essay

The Inouyes filed jointly in 2020. Their AGI is $78,000. They reported $3,000 of qualified business income and $22,000 of itemized deductions. They have two children, one of whom qualifies as their dependent as a qualifying child. The 2020 standard deduction amount for MFJ taxpayers is $24,800. What is the total amount of from AGI deductions they are allowed to claim on their 2020 tax return?

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Definitions:

Unamortized Discount

The portion of a bond's issue price that is below its face value and has not yet been amortized over the life of the bond.

Unamortized Premium

The portion of a bond premium that has not yet been amortized or gradually written off over the life of the bond.

Installment Note

A debt instrument that requires a series of periodic payments (installments) of principal and interest over a specific period until the debt is paid off.

Present Value

The current value of a future sum of money or stream of cash flows given a specified rate of return, used in the discounting of future cash flows to understand their value in present terms.