Deductions from Adjusted Gross Income, Calculating Tax Liability (LO. 3,5) Arthur and Cora are married and have 2 dependent children. They have a gross income of $94,840. Their allowable deductions for adjusted gross income total $4,900, and they have total allowable itemized deductions of $26,560. The standard deduction for 2020 is $24,800 Refer to the Tax Rate Schedules to answer the following questions. Round intermediate computations and final answer to the nearest dollar. Note: The child tax credit in 2020 is $2,000 per child. a. Arthur and Cora's 2020 taxable income is $ 63,380 V. b. Arthur and Cora's 2020 income tax is $ 3,200 X Feedback Check My Work After determining the taxpayer's taxable income, the tax is computed using the appropriate rate for the taxpayer's filing status. c. If Arthur has $2,800 and Cora has $700 withheld from their paychecks then they are entitled to a refund of $ 6,720 X 2020 INDIVIDUAL TAX RATE SCHEDULES Table B-1 Single Taxpayers But Not Over If Taxable income Is Over $ 0 9,875 40,125 85,525 163,300 207,350 518,400 9,875 40,125 85,525 163,300 207,350 518,400 The Tax is 10% 987.50 + 12% 4,617.50 + 22% 14,605.50 +24% 33,271.50 + 32% 47,367.50 + 35% 156,235.00 +37% of the Amount Over 5 0 9,875 40,125 85,525 163,300 207,350 518,400 Table B-2 Married Taxpayers Filing Jointly and Surviving Spouse But Not Over The Tax is If Taxable income Is Over 5 0 19,750 80,250 171,050 326,600 414,700 622,050 19,750 80,250 171,050 326,600 414,700 622,050 10% $ 1,975.00 + 12% 9,235.00 + 22% 29,211.00 +24% 66,543.00 + 32% 94,735.00 + 35% 167,307.50 + 37% of the Amount Over $ 0 19,750 80,250 171,050 326,600 414,700 622,050