Determine taxable income for the following situation. Show your work (amount for exemptions is 3650 and standard deduction 11400) assuming the tax year is 2009. John and Marie are married filing a joint return. John is 38 and Marie is 37. They support John's mother, age 80 who received social security of $4,000 and dividend income of $1,900.
They had the following items of income and deductions:
Salary $82,000
Interest Income 6,000
IRA Contribution (regular) 4,000
Itemized deductions 6,200
Withholding for Federal Tax 8,500
Withholding for state tax 1,200
Dividend Income 1900
Penalty for early CD
Withdrawal 50