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C through E is incorrect, and I'm not sure what I'm miscalculating. Tax year is 2020. Marc and Michelle are married and earned salaries this
C through E is incorrect, and I'm not sure what I'm miscalculating. Tax year is 2020.
Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2005). 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 $2,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) a. What is Marc and Michelle's gross income? $ Description Marc's salary Michelle's salary Corporate bond interest Amount 64,000 12,000 500 Gross income $ 76,500 b. What is Marc and Michelle's adjusted gross income? Adjusted gross income $ 72,500 c. What is the total amount of Marc and Michelle's deductions from AGI? Total deductions from AGI $ 4,000 d. What is Marc and Michelle's taxable income? Taxable income $ 45,700 e. What is Marc and Michelle's taxes payable or refund due for the year? Taxes payable $ 1,589Step by Step Solution
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