Question
4) During all of 2018, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half
4) During all of 2018, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2018. Neither is blind, and both are under age 65. They reported the following tax-related information for the year: (Use the tax rate schedules)
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Salary income | $125,000 |
Prize from local radio station | 1,500 |
Medical expenses (no health insurance) | 4,000 |
Real estate taxes | 4,200 |
Alimony paid by Mr. Clay (divorced in 2015) | 12,000 |
State income taxes withheld in 2018 | 1,800 |
State income taxes paid with 2018 tax return (return was filed in April, 2019) | 1,500 |
Federal income tax withholding | 7,500 |
Qualified home mortgage interest (acquisition debt of $300,000) | 15,000 |
Charitable contributions | 4,000 |
A. What is the Clays' taxes payable or (refund due) (ignore the alternative minimum tax)?
B. What is the Clays' tentative minimum tax and alternative minimum tax?
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