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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 2017, 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 2017, Ed and Jane realized the following items of income and expense:
Item | Amount | |||
Eds Salary | $ | 35,000 | ||
Janes Salary | 34,400 | |||
Municipal bond interest income | 400 | |||
Alimony paid (for AGI deduction) | (7,000 | ) | ||
Real property tax (from AGI deduction) | (10,000 | ) | ||
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They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2017 standard deduction amount for MFJ taxpayers is $12,700 and the 2017 exemption amount is $4,050.
What are the couple's taxes due or tax refund (use the tax rate schedules not tax tables)?
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