Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3, 5)

Hongtao is single and has a gross income of $90,100. His allowable deductions for adjusted gross income are $4,300, and his itemized deductions are $13,400. The standard deduction for 2017 is $6,350 and a personal exemption is $4,050.

Round all amounts to the nearest dollar. Refer Tax Rate Schedules to answer the following questions.

a. Hangtao's taxable income is $ and his tax liability is $________ for 2017.

b. If Hongtao has $13,500 withheld from his salary during 2017 then Hongtao has refund of $_______.

c. Assume the same facts as in part a and part b, except that Hongtao is married. His wife's salary is $30,000, and she has $2,300 withheld from her paycheck. They file jointly. The standard deduction for 2017 is $12,700. Their taxable income is $ and their tax liability is $ for 2017. They will receive a refund of $_________.