Answer:
Taxable income is $16600 .
Step-by-step explanation:
As given
Nick and Nora are married and have three children in college.
They have an adjusted gross income of $47,400.
If their standard deduction is $12,600 itemized deductions are $14,200 and they get an exemption of $4000 for each adult and each dependent .
Total exemption amount = Total number of adult and each dependent × Amount of exemption .
= 5 × 4000
= $ 20000
Thus
Taxable income = Adjusted gross income - Standard deduction - Itemized deductions - Total exemption amount
= $47400 - $12600 - $ 14200 - $4000
= $ 47400 - $ 30800
= $ 16600
Therefore the taxable income is $16600 .
