2017 Income Tax Fundamentals
Rob’s Salary $120,000
Rachel’s net income from her business $130,000
Interest (Rob’s separate property investments) $ 4,000
Interest (Rachel’s separate property investments) $ 2,000
Dividends (community property) $ 5,000
Total income is $261,000
If Rachel files a separate return, how much income should she report?
If Rob and Rachel live in Texas, what should Rachel report as income?