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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

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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 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 $2,000 child tax credit for Nicholas. Doug and Jeannie paid $9,900 of expenditures that qualify as itemized deductions 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 2022 tax rate schedules. (5 points) Single-Schedule X If taxable Head of household-Schedule Z of the If taxable of the income is: Over- But not over- amount income is: The tax is: over- Over- But not over- amount The tax is: over- $ 0 $ 10,275 .........10% $ 0 $ 0 $ 14,650 .........10% $ 10,275 41,775 41,775 89,075 $ 1,027.50+12% 10,275 14,650 55,900 $ 1,465.00+12% 14,650 4,807.50+22% 41,775 55,900 89,050 6,415.00 +22% 55,900 89,075 170,050 15,213.50 + 24% 89,075 89,050 170,050 13,708.00+24% 89,050 170,050 215,950 34,647.50+32% 170,050 170,050 215,950 33,148.00+32% 170,050 215,950 539,900 49,335.50+ 35% 215,950 215,950 539,900 47,836.00+ 35% 215,950 539,900 162,718.00+37% 539,900 539,900 161,218.50 + 37% 539,900 Married filing jointly or Qualifying widow(er) Married filing separately-Schedule Y-2 Schedule Y-1 If taxable income is: Over- But not over- of the amount The tax is: over- If taxable income is: Over- But not over- of the amount The tax is: over- $ 0 $ 20,550 .........10% $ 0 $ 0 $ 10,275 .........10% $ 20,550 83,550 $ 2,055.00+12% 20,550 10,275 41,775 $ 1,027.50+12% 10,275 83,550 178,150 9,615.00 +22% 83,550 41,775 89,075 4,807.50 +22% 41,775 178,150 340,100 30,427.00+24% 178,150 89,075 170,050 15,213.50+24% 89,075 340,100 431,900 69,295.00+32% 340,100 170,050 215,950 34,647.50+ 32% 170,050 431,900 647,850 647,850 98,671.00+35% 431,900 215,950 323,925 49,335.50+35% 215,950 174,253.50+ 37% 647,850 323,925 87,126.75 + 37% 323,925 [2022 Standard Deduction Tables] Filing Status Single Married, filing jointly Qualifying Surviving spouse Head of household Married, filing separately Basic Standard Deduction Additional Standard Deduction $12,950 $1,750 25,900 1,400 25,900 1,400 19,400 1,750 12,950 1,400

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