A married couple filing jointly earn $120,600 each year. They have one child, so they can claim three exemptions of $ 3650 each. They find that taking the standard deduction for taxpayers married filing jointly (which is $ 1,400) ) gives them less taxable income than itemizing their deductions , so they take the standard deduction The wife puts $10,000 into a 401(k) plan each year through her office, and the husband saves $7000 each year in the same way ( Recall that money saved this way - in a retirement account is deducted before taxes.) Use the table on the next slide to help answer the questions ahead ,