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.
Compute the following for 2015:
a. Itemized deductions allowed after the phase-out for high-income taxpayers.
b. Exemption deductions (ordinarily $4,000 x 3) after the high-income phase-out.
c. Taxable income.