McGraw-Hill's Taxation of Individuals and Business Entities 3rd Edition by Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Exercise 48

Clyde and Bonnie were married this year.Clyde has a steady job that will pay him about $37,000 while Bonnie does odd jobs that will produce about $28,000 of income.They also have a joint savings account that will pay about $400 of interest.If Clyde and Bonnie reside in a community property state and file married-separate tax returns, how much gross income will Clyde and Bonnie each report? Any difference if they reside in a common law state? Explain.