Problem
The Madisons complete their joint federal income tax return for last year's income. Their gross income last year was $44,150. They had adjustments to income for an approved retirement plan of $2,870. They also itemized their deductions and found a total of $8,380. They claimed three exemptions (one each for Twanya, Lewellyn, and their son) at $3,100 each. What is their taxable income?