mr and mrs smith are filing a joint tax return. while listing their deductions, they find that they can…

mr and mrs smith are filing a joint tax return. while listing their deductions, they find that they can deduct $2,500 from medical bills, $1,200 from state taxes, $4,000 from charitable donations, and $2,000 from interest on their mortgage. the standard deduction for married couples filing jointly in 2023 is $27,700. how does the standard deduction compare to the smiths deductions? the standard deduction is $27,700 better than the smiths deductions. the smiths deductions are $18,000 better than the standard deduction. the smiths deductions are $27,700 better than the standard deduction. the standard deduction is $18,000 better than the smiths deductions.

mr and mrs smith are filing a joint tax return. while listing their deductions, they find that they can deduct $2,500 from medical bills, $1,200 from state taxes, $4,000 from charitable donations, and $2,000 from interest on their mortgage. the standard deduction for married couples filing jointly in 2023 is $27,700. how does the standard deduction compare to the smiths deductions? the standard deduction is $27,700 better than the smiths deductions. the smiths deductions are $18,000 better than the standard deduction. the smiths deductions are $27,700 better than the standard deduction. the standard deduction is $18,000 better than the smiths deductions.

Answer

Explanation:

Step1: Calculate Smiths' total deductions

Add up all their deductions: (2500 + 1200+4000 + 2000) [ \begin{align*} &2500+1200 + 4000+2000\ =&(2500+1200)+(4000 + 2000)\ =&3700+6000\ =&9700 \end{align*} ]

Step2: Compare standard deduction and Smiths' deductions

The standard deduction is (27700), and Smiths' deductions are (9700). Since (27700>9700), the standard deduction is better. The difference is (27700 - 9700=18000)

Answer:

The standard deduction is ($18,000) better than the Smiths' deductions.