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# Answer to Question #43368 in Economics of Enterprise for Seth Morgan

Question #43368
Homer (age 68) and his wife Jean (age 70) file a joint return. They furnish all of the support of Luther (Homer&#039;s 90-year-old father), who lives with them. For 2011, they received \$6,000 of interest income on city of Chicago bonds and interest income on corporate bonds of \$48,000. Compute Homer&rsquo;s and Jean&#039;s taxable income for 2011.
1
2014-06-18T09:31:10-0400
Taxable income = adjusted income - (deductions + allowance for exemptions)

Interest income was \$6,000.
Interest from corporate bonds was \$48,000.
Adjusted income = 6,000 + 48,000 = 54,000.
In 2011 standard deduction was \$11,600 for married filing jointly.
Additional standard deduction in 2011 based on age (65 or older) was \$1,150 for married filing jointly per person, \$2,300 for Homer and Jean. For father the additional standard deduction will be \$1,450 as for single. Total amount will be \$3,750.
TI = 54,000 - (11,600 + 3,750) = 38,650.

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