Eugene and Velma are married. For 2018, Eugene earned $25,000 and Velma earned $30,000. They have decided to file separate returns. They have no deductions for adjusted gross income. Eugene's itemized deductions are $14,200 and Velma's are $4,000. Assuming Eugene and Velma do not live in a community property state and Eugene deducts the greater of the standard deduction or itemized deductions, what is Eugene's taxable income?

Respuesta :

Answer:

Eugene's taxable income is $10,800

Explanation:

in case of separate filling, if one spouce sellected itemized deduction then other will also have to use itemized deduction.

taxable income =  $25,000 - $14,200

                          = $10800

Therefore, Eugene's taxable income is $10,800.