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Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2018, Ed and Jane realized
Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2018, Ed and Jane realized the following items of income and expense Item Ed's Salary Jane's Salary Municipal bond interest income Qualified business income Alimony paid (for AGI deduction) Real property tax (from AGI deduction) Charitable contributions (from AGI) Amount $35,000 70,000 400 1,000 (7,000) (10,000) (15,000) They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2018 standard deduction amount for MFJ taxpayers is $24,000. Compute the following Gross income Adjusted gross income Taxable income Tax liability before credits Tax due or (tax refund) after payments and credits (enter a tax refund as a negative number, for example -100)
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