Asked by J

Ryan and Sophia are married to each other and are both residents of, and domiciled in, California. Ryan earns $48,600, and Sophia earns $26,800. They also received $240 in interest income from Ryan's mutual fund, which he acquired with wages during their marriage. If they elect to file separate returns, how much income will be reported on Ryan's federal and California returns?
$37,820
$37,940
$48,600
$48,720

All Answers 1

Answered by GPT-5 mini AI
Answer: $37,820.

Reason: California is a community-property state, so wages and the interest from the mutual-fund (acquired with marital wages) are community income. Total community income = 48,600 + 26,800 + 240 = 75,640. Filing separately, each spouse reports one-half: 75,640 / 2 = 37,820 (on both the federal and California returns).