Marc and Michelle are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (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. They are also able to claim $2,900 in recovery rebate credit ($2,400 for Marc and Michelle and $500 for Matthew). Assume they did not receive the recovery rebate in advance. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the year. Assume CARES Act applies. (Use the tax rate schedules.)

c. What is the total amount of Marc and Michelle's deductions from AGI? - Perform calculations assuming the CARES Act applies.

Tax deductions from AGI $_______

d. What is Marc and Michelle's taxable income? - Perform calculations assuming the CARES Act applies.

Taxable income $______

e. What is Marc and Michelle's taxes payable or refund due this year? - Perform calculations assuming the CARES Act applies.

$__________

Can you please show calculations in Excel? Thank you!

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 59.235 plus 22% of the excess over $80,250 $171,050 $326,600 $29.211 plus 24% of the excess over $171,050 $326,600 $414,700 566,543 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 a. What Is Marc and Michelle's gross Income? Answer is complete and correct. Description Amount Marc's salary $ 84.000 Michelle's salary 12.000 Corporate bond interest 500 Gross income S 78,500 b. What Is Marc and Michelle's adjusted gross Income? Answer is complete and correct. Adjusted gross income $ $ 72,500