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Doug and Jeannie are married and earned salaries this year of $72,000 and $53,000, respectively. In addition to their salaries, they received interest of $610
Doug and Jeannie are married and earned salaries this year of $72,000 and $53,000, respectively. In addition to their salaries, they received interest of $610 from corporate bonds and $500 from municipal bonds, and they also received a $5,000 cash gift from Doug's uncle. During the year, Doug paid alimony to a prior spouse in the amount of $3,600 (under a divorce decree effective March 1, 2008). Doug and Jeannie have a 9-year-old son, Nicholas, who lived with them throughout the entire year. Thus, Doug and Jeannie are allowed to claim a $3,000 child tax credit for Nicholas. Doug and Jeannie paid $12,300 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $8,300 in federal income taxes withheld from their paychecks during the year. a. What is Doug and Jeannie's gross income? (2 points) b. What is Doug and Jeannie's adjusted gross income? (2 points) c. What is Doug and Jeannie's taxable income? (2 points) d. What is Doug and Jeannie's taxes payable or refund due for the year? Use 2021 tax rate schedules. (5 points) Doug and Jeannie are married and earned salaries this year of $72,000 and $53,000, respectively. In addition to their salaries, they received interest of $610 from corporate bonds and $500 from municipal bonds, and they also received a $5,000 cash gift from Doug's uncle. During the year, Doug paid alimony to a prior spouse in the amount of $3,600 (under a divorce decree effective March 1, 2008). Doug and Jeannie have a 9-year-old son, Nicholas, who lived with them throughout the entire year. Thus, Doug and Jeannie are allowed to claim a $3,000 child tax credit for Nicholas. Doug and Jeannie paid $12,300 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $8,300 in federal income taxes withheld from their paychecks during the year. a. What is Doug and Jeannie's gross income? (2 points) b. What is Doug and Jeannie's adjusted gross income? (2 points) c. What is Doug and Jeannie's taxable income? (2 points) d. What is Doug and Jeannie's taxes payable or refund due for the year? Use 2021 tax rate schedules. (5 points)
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