Question
Andy and Marcia Tufts, both age 35, are married with two dependent children and file a joint return .Assume the children do not qualify for
Andy and Marcia Tufts, both age 35, are married with two dependent children and file a joint return.Assume the children do not qualify for the child tax credit. From the following information, compute their tax owed or refund due for 2016.
| Andys salary | $50,000 |
| Federal income tax withheld | 4,000 |
| Marcias salary | 42,000 |
| Federal income tax withheld | 3,500 |
| Andys contribution to an IRA (assume IRA is deductible for AGI) | 2,000 |
| Dividends received from domestic corporations | 950 |
| Medical expenses for doctors and hospitals | 8,200 |
| Premiums for health insurance | 2,600 |
| Prescription drugs and medicines | 800 |
| Eyeglasses for one of the children | 175 |
| Interest on home mortgage | 7,800 |
| Interest on credit cards | 300 |
| Real property taxes on residence | 2,300 |
| State income taxes | 2,800 |
| Fee for preparation of tax returns | 125 |
| Union dues and subscriptions | 480 |
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Managerial Accounting Tools For Business Decision Making
Authors: Jerry J Weygandt, Paul D Kimmel, Jill E Mitchell
9th Edition
9781119754053
