2) Shawn and Monica Kincaide are married with no children. Their tax data follows:
Shawn's salary on W-2, federal tax withholding $5,100		$ 48,200
Monica's salary on W-2, federal tax withholding $5,230		51,300
Interest income, which includes $100 of municipal interest		825
Monica's student loan interest deduction		355
Shawn's IRA contribution		2,000
Mortgage interest on joint account		8,200
Cash gift from Shawn's grandmother		3,000
What is the Kincaide's total income?
What is their adjusted gross income?
What is the Kincaide's taxable income?
Hint: standard deduction is on Form 1040
Compute their total tax. Table above right.
Will the Kincaides owe tax or receive a refund?
What amount?