Ellen and Rick Are Married with One Dependent Child

question 123

Essay

Ellen and Rick are married with one dependent child. They have AGI of $355,300, and itemized deductions consisting of $20,000 state income taxes and $20,000 medical expenses, after applying the 10 percent of AGI limitation.
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Compute the following for 2016:
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a.Itemized deductions allowed after the phase-out for high-income taxpayers.
b.Exemption deductions (ordinarily $4,050 x 3) after the high-income phase-out.
c.Taxable income.

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Definitions:

Comfort Level

A subjective measurement of a person's well-being, ease, and physical or emotional satisfaction in a specific situation.

Working Height

The optimal height at which tasks and activities are performed to maintain comfort and reduce strain, often used in ergonomics.

Postoperative

Referring to the period of time and care following a surgical procedure, focusing on recovery and monitoring for complications.

Analgesic

A type of medication used to relieve pain without causing loss of consciousness.