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. 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 $6,000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year. (please Use 2018 tax rate schedules.)

a. What is Marc and Michelles gross income? It is 76500

b. What is Marc and Michelles adjusted gross income? It is 72500

c. What is the total amount of Marc and Michelles deductions from AGI?

d. What is Marc and Michelles taxable income?

e. What is Marc and Michelles taxes payable or refund due for the year?

2018 Tax Rate Schedules Schedule X-Single Schedule Z-Head ef Household If taxable income in over But not over $ 9.525 38,700 $ 82,500 $157.500 The tax i If taxable income is overn But not over 13,600 51.800 $ 82.500 157.500 The tax 10% of taxable income 5952.50 plus 12% of the ence" over ss.525 $4,453.50 plus 22% ofthe exo over $38,700 $ 9.325 38,700 3 82.500 $157,500 $200,000 13.600 51,800 32.500 $157,500 $200,000 10% of taxable income $1,500 plus 12% ofthe excess over $13,500 $5,944 plus 22% ofthe excess over $51,000 $12,698 plus 24% ofthe excess over $82,500 $30,096 plus 32% of the ence" over $157,500 $44,298 plus 35% of the excess over $200.000 $149298 plus 37% of the atoen over $500,000 $32,009.50 plus 32% of the etoets over $157,500 $45,009.50 plus 35% of the mess over S200.000 $150,689.50ptus 37% oftbaatsen o r$500,000 $500,000 $500,000 Schedule Y-1-Married Filing Jointly or Qualitying Widaw (er) Schedule Y-2-Married Filing Separately If taxable income s over: The tax is: But not over $ 19.050 $ 77,400 $165,000 $315.000 If taxable income is over: But not over The tax in 10% of taxable income $1.905 plus 12% ofthe excess over $29.050 $8907 plus 22% ofthe ette" over $77,400 $28-179 plus 24% orthe encesa over S165.000 $64,179 plus 32% of the men over $315,000 $91.379 plus 35% orthe excess over $400,000 $161,579 plus 37% of the amets over S600,000 9.525 $ 38,700 82.500 $157,500 $200,000 5300,000 $ 9525 5 38,700 $ 82,500 157.500 $200,000 10% of taxable income 5952.50 plus 12% of the excess over $9.525 $4453.50 plas 22% ofthe ea ess over $38,700 $14,089.30 plus 24% of the mess over 582300 $32,089.50 ptns 32% of the min over $157,500 $45-609.50plus 35% ofthe exoess over$200,000 $8060950 plus 37% of the emets over $300,000 5 19.050 77,400 5315,000 $400.000 $600,000