Case 4 Victor and Maria Reduce Their Income Tax Liability

(a) Calculate the Hernandezes’ income tax liability for this year as a joint return (using Table 4.3) given the following information: gross salary income (Victor, $56,000; Maria $51,000); state income tax refund ($400); interest on checking and savings accounts ($250); holiday bonus from Maria’s employer ($240);
contributions to qualifi ed retirement accounts ($5000); itemized deductions (state income taxes, $2700, real estate taxes, $2600; mortgage interest, $6300; charitable contributions, $2500); and exemptions ($3650 each) for themselves and their two children.