Calculating the Allowable Portion (continued)

Case Study

Antonio and Sofia have lived in Puerto Rico for the entire tax year. They are under 65 and use the Married Filing Jointly filing status so their standard deduction is $27,700 (not adjusted). Antonio was a federal employee during this tax year and earned $40,000; Sofia had income of $20,000 from Puerto Rico sources not subject to U.S. tax. They are not itemizing their deductions.

What would you enter on each line of the Worksheet for Puerto Rico Filers with Exempt Income under Section 933 Who Do Not Itemize Deductions to calculate Antonio and Sofia’s adjusted standard deduction?