Question
During all of 2020, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of
During all of 2020, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2020. Neither is blind, and both are under age 65. They reported the following tax-related information for the year. (Use the tax rate schedules)
| Salary income | $125,000 |
|---|---|
| Medical expenses | 4,000 |
| Real estate taxes | 4,200 |
| Alimony paid by Mr. Clay (divorced in 2015) | 12,000 |
| State income tax withheld | 1,800 |
| Federal income tax withheld | 5,000 |
| Qualified home mortgage interest (acquisition debt of $300,000) | 15,000 |
| Charitable contributions | 9,000 |
Compute the following amounts for their 2020 tax return:
- Adjusted gross income (AGI)
- Deductions FROM AGI
- Tax liability after credits
- Tax refund
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Introduction To Accounting And Finance
Authors: Geoff Black
2nd Edition
0273711628, 978-0273711629
