Question

question 3 of 10
according to the income section shown below from the 1040ez form, if a married couple filing their federal income tax return jointly enters $18,100 on line 4 for adjusted gross income, what would they enter on line 6 for their taxable income? assume that nobody can claim either spouse as a dependent.

income
attach
form(s) w-2
here.
enclose, but do
not
attach, any
payment.
1 wages, salaries, and tips. this should be shown in box 1 of your form(s) w-2.
attach your form(s) w-2. 1
2 taxable interest. if the total is over $1,500, you cannot use form 1040ez. 2
3 unemployment compensation in excess of $2,400 per recipient and alaska permanent
fund dividends (see page 11). 3
4 add lines 1, 2, and 3. this is your adjusted gross income. 4
you may benefit
from filing form
1040a or 1040
see before you
begin on page 4.
5 if someone can claim you (or your spouse if a joint return) as a dependent, check
the applicable box(es) below and enter the amount from the worksheet on back.
□ you □ spouse
if no one can claim you (or your spouse if a joint return), enter $9,350 if single;
$18,700 if married filing jointly. see back for explanation. 5
6 subtract line 5 from line 4. if line 5 is larger than line 4, enter -0-.
this is your taxable income. 6

a. $600
b. $0
c. $18,700

Explanation:

Step1: Identify line 5 amount

For married filing jointly with no one claiming them as dependents, line 5 amount is $18,700 (from the form's instructions).

Step2: Calculate line 6 (taxable income)

Line 6 = Line 4 - Line 5. Line 4 is $18,100, Line 5 is $18,700. So $18,100 - $18,700 = -$600. But since we can't have negative taxable income, we enter $0 (as per "if line 5 is larger than line 4, enter -0-").

Answer:

B. $0