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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)

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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