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    income tax problem solved

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    During 2007 Richard and Debbie, who are married and have two dependent children, have the following income and losses:

    Total salaries $130,000
    Bank account interest 25,000
    Short-term capital gains 4,000
    Short-term capital losses (1,500)

    They also incurred the following expenses:

    Qualified medical expenses $ 20,000
    State income taxes paid 12,000
    Property taxes on home 2,300
    Qualified residence interest 6,000
    Investment interest expense 7,500
    Cash charitable contributions 80,000
    Tax return preparation fees 3,600
    Unreimbursed employee business expenses 20,000

    Compute Richard and Debbie's taxable income for the year. (Show all calculations in good form).

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    Solution Summary

    income tax problem solved for filling out the 1040 form