Reference no: EM132695791
Problem - Calculating taxable income for a married couple filing jointly
Freya and Sebastian Hunter are married and have one child. Sebastian is putting together some figures so he can prepare the Hunters' joint 2018 tax return. So far, he's been able to determine the following with concerning income and possible deductions:
Total unreimbursed medical expenses incurred $1,155
Gross wages and commissions earned 50,770
IRA contribution 5,000
Mortgage interest paid 5,200
Capital gains realized on assets held less than 12 months 1,450
Income from limited partnership 200
Other allowable deductions 875
Interest paid on credit cards 380
Qualified dividend income earned 610
Sales taxes paid 2,470
Charitable contributions made 1,200
Capital losses realized 3,475
Interest paid on a car loan 570
Social Security taxes paid 2,750
Property taxes paid 700
State income taxes paid 1,700
Given this information, determine the amount of the available itemized deductions. How much taxable income will the Hunters have in 2018? (Note: Assume that Sebastian is not covered by a pension plan where he works, his child qualifies for the child tax credit, and the standard deduction of $24,000 for married filing jointly applies.)