Marc and Michelle are married and earned salaries this year of $73,600 and $15,600, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,700 from corporate bonds. Marc contributed $3,700 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,700 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $8,400 of expenditures that qualify as itemized deductions and they had a total of $7,285 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)

2020 Tax Rate Schedules

IndividualsSchedule X-Single

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,875	10% of taxable income
$ 9,875	$ 40,125	$987.50 plus 12% of the excess over $9,875
$ 40,125	$ 85,525	$4,617.50 plus 22% of the excess over $40,125
$ 85,525	$163,300	$14,605.50 plus 24% of the excess over $85,525
$163,300	$207,350	$33,271.50 plus 32% of the excess over $163,300
$207,350	$518,400	$47,367.50 plus 35% of the excess over $207,350
$518,400		$156,235 plus 37% of the excess over $518,400

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$ 0	$ 19,750	10% of taxable income
$ 19,750	$ 80,250	$1,975 plus 12% of the excess over $19,750
$ 80,250	$171,050	$9,235 plus 22% of the excess over $80,250
$171,050	$326,600	$29,211 plus 24% of the excess over $171,050
$326,600	$414,700	$66,543 plus 32% of the excess over $326,600
$414,700	$622,050	$94,735 plus 35% of the excess over $414,700
$622,050		$167,307.50 plus 37% of the excess over $622,050

Schedule Z-Head of Household

If taxable income is over:	But not over:	The tax is:
$ 0	$ 14,100	10% of taxable income
$ 14,100	$ 53,700	$1,410 plus 12% of the excess over $14,100
$ 53,700	$ 85,500	$6,162 plus 22% of the excess over $53,700
$ 85,500	$163,300	$13,158 plus 24% of the excess over $85,500
$163,300	$207,350	$31,830 plus 32% of the excess over $163,300
$207,350	$518,400	$45,926 plus 35% of the excess over $207,350
$518,400		$154,793.50 plus 37% of the excess over $518,400

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$ 0	$ 9,875	10% of taxable income
$ 9,875	$ 40,125	$987.50 plus 12% of the excess over $9,875
$ 40,125	$ 85,525	$4,617.50 plus 22% of the excess over $40,125
$ 85,525	$163,300	$14,605.50 plus 24% of the excess over $85,525
$163,300	$207,350	$33,271.50 plus 32% of the excess over $163,300
$207,350	$311,025	$47,367.50 plus 35% of the excess over $207,350
$311,025		$83,653.75 plus 37% of the excess over $311,025

Check my work Required Information Comprehenslve Problem 4.59 (LO 4-1, LO 4-2, LO 4.3) (Algo) [The following Information applies to the questions displayed below.] Marc and Michelle are married and eamed salaries this year of $73,600 and $15,600, respectively. In addition to their salarles, they received Interest of $350 from municipal bonds and $1,700 from corporate bonds. Marc contributed $3,700 to an Individual retrement account and Marc paid alimony to a prior spouse in the amount of $2.700 (under a divorce decree effective June 1, 2005). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $2,000 child tax credit for Matthew. Marc and Michelle paid $8.400 of expenditures that qualify as itemized deductions and they had a total of $7.285 in federal income taxes withheld from their paychecks during the year (Use the tax rate schedules) Comprehensive Problem 4.55 Part-a through e (Algo) a. What is Marc and Michelle's gross income? Description Amount Gross income $ Part 1 of 3 c. What is the total amount of Marc and Michelle's deductions from AGI? 5.55 points Answer is complete but not entirely correct. Total deductions from AGI $ 24,400 d. What Is Marc and Michelle's taxable income? Answer is complete but not entirely correct. Taxable income $ 24.400 X e. What is Marc and Michelle's taxes payable or refund due for the year? Answer is complete but not entirely correct. Refund due 2.481 X