Ellen and Rick Are Married with One Dependent Child

question 77

Essay

Ellen and Rick are married with one dependent child. They have AGI of $355,250, 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 2014:
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a. Itemized deductions allowed after the phase-out for high-income taxpayers.
b. Exemption deductions (ordinarily $3,950 x 3) after the high-income phase-out.
c. Taxable income.

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Definitions:

Pathology Present

Indicates the presence of disease or pathological changes in an organism.

Urinary Frequency

A condition characterized by the need to urinate more often than usual.

Fascia

A fibrous membrane covering, supporting, and separating muscles; may also unite the skin with underlying tissue.

Tendon

A pliable yet non-stretchable strand of durable collagenous fibrous tissue that connects a muscle to a bone.