Question #61:
Ronn & Lynn are retired and married to each other, living alone with no other dependents. They
are both 66 and file a married filing joint return. Using the following information compute their
taxable income and net tax refund or tax due for 2022.
Dick Jane
Salary Income $ 3,900 $ 2,400
Social Security Income $ 16,000 $ 10,000
Municipal Bond Interest Income $ 16,000 $ 3,200
Dividends $-0- $ 15,000
Net Gain from Small Business $ 9,000 $-0-
Itemized Deductions $ 500 $ 5,500
Federal Withholding $ 1,500 $ 500
Rental Loss (Fully Deductible) $-0- $ (10,500)
Net Self-Employment Tax Due $ 1,272 $-0-
IRA Deduction $ 3,000 $ 3,000
\frac{1}{2} Self-Employment Tax Deduction $ (636) $-0-
SHOW YOUR WORK!!! USE THE TAX TABLES TO COMPUTE THE TAX!!!