Charles D. and Alice A. Davis were married during all of 2018 and had income from the following sources:

Salary, Charles $87,100

Federal income tax withheld 3,425

Part-time salary, Alice 16,700

Federal income tax withheld 880

Interest from savings account 320

Interest from U.S Government Bonds 430

Charles and Alice provide the sole support of their two children (both under age 17). During the year, they paid job-related child care expenses of $2,200. Their itemized deduction for the year is insufficient for them to itemize, but a deductible $2,000 was deposited in each of their individual retirement accounts.

Calculate the Federal income tax and the tax due (or refund) for Mr. and Mrs. Davis, assuming they file a joint return. To simplify the calculation, assume that $440 is the credit for children and dependent care expenses as calculated on Form 2441, Line 11. Use the 2018 amount for the standard deduction. Also use the 2018 tax tables. Supply fictitious information for the address, occupations, Social Security numbers and childrens names. (Note: Use 2018 tax forms.)