2 of 2 Required information The following information applies to the questions displayed below) Marc and Michelle are married and earned salaries this year of $68,000 and $13,500, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,000 from corporate bonds. Marc contributed $3,000 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,000 (under a divorce decree effective June 1, 2006). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $3,000 child tax credit for Matthew. Marc and Michelle paid $7,000 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $3,135 in federal Income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) ook int a. What is Marc and Michelle's gross income? cences Description Marc's salary Michelle's salary Corporate bond interest Amount 68,000 13,500 1.000 Gross income $ 82,500 b. What is Marc and Michelle's adjusted gross income? 1 of 2 . Adjusted gross income $ 77,500 ook c. What is the total amount of Marc and Michelle's deductions from AGI? rint Total deductions from AGI -ences d. What is Marc and Michelle's taxable income? Taxable income e. What is Marc and Michelle's taxes payable or refund due for the year? Refund due Individuals Schedule X-Single Ir taxable income is over: But not over: The tax is: $ 0 $ 9,950 10% of taxable income $9.950 $ 40,525 995 plus 12% of the excess over $9.950 $ 40.525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164.925 $14.751 plus 24% of the excess over $86,375 $164.925 $ 209.425 $33,603 plus 32% of the excess over $164.925 $ 209,425 S 523.600 $47.843 plus 35% of the excess over $209,425 $ 523.600 $157.804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,900 10% of taxable income $ 19,900 $ 81,050 $1.990 plus 12% of the excess over $19.900 $ 81,050 $ 172,750 $9,328 plus 22% of the excess over $81,050 $ 172,750 $ 329,850 $29,502 plus 24% of the excess over $172.750 $ 329,850 $ 418,850 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 14,200 10% of taxable income $ 14,200 $ 54,200 $1,420 plus 12% of the excess over $14,200 $ 54,200 $ 86,350 $6,220 plus 22% of the excess over $54,200 $ 86,350 $164.900 $13,293 plus 24% of the excess over $86,350 $164.900 $ 209,400 $32.145 plus 32% of the excess over $164.900 $ 209,400 $ 523,600 $46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $9.950 10% of taxable income $ 9950 $ 40.525 1995 plus 12% of the excess over $ 9.950 $ 40,525 $ 86,375 $4,664 plus 22% of the excess over $40,525 $ 86,375 $ 164.925 $14.751 plus 24% of the excess over $86,375 $164.925 $ 209 425 $33,603 plus 32% of the excess over $164.925 $ 209,425 $ 314.150 $47.843 plus 35% of the excess over $209,425 $314.150 $84.496.75 plus 37% of the excess over $314.150