Total itemized deductions $121,700 s 12,600 s 12,000 $97,100 AGI standard or itemized deduction (4000*3) personal exemption Taxable Income 3) How much Federal tax does the Green family owe? Solution: 10% bracket 18,450 -o = 18,450 18,450 * .10 = 1,845 taxes owed at the 10% bracket 15% bracket 74,900 - 18,450 = 56,450 56,450 * .15 = 8,467.50 taxes owed at the 15% bracket 25% bracket 97,100 - 74,900 = 22,200 22,200 * .25 = 5,550 taxes owed at the bracket 1,845 +8,467.50 + 5,550 = 15,862.50 4. Does the household owe the government money or will they receive a refund? 15,862.00 tax liability (what they owe) -1,000 child tax credit -13.250 paid already 1,612.50 still owe the government