Bill and Tessa Have Two Children Whom They Support and Who

question 99

Essay

Bill and Tessa have two children whom they support and who live in their home.Timmy is 17 and has earned income of $5,000 for the year.Their other child,Tommy,is 15.Tessa's mother also lives with them and may be claimed as their dependent.She is 89 years old.Their adjusted gross income is $130,000.
Required: Compute Bill and Tessa's taxable income for 2014 if they file a joint return and they do not itemize deductions.

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Definitions:

Remarry

The act of getting married again after one marriage has ended through divorce or widowhood, often reflecting changes in personal circumstances and societal attitudes toward marriage.

Racial-ethnic groups

Categories of people recognized by distinct physical characteristics, cultural practices, and/or heritage, emphasizing diversity within populations.

Remarriage rates

The statistical occurrences of individuals entering into marriage again following a divorce or the death of a spouse.

Cohabitation rates

The statistical measure of how common it is for couples to live together without being legally married.