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 $3,500 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.) a. What is Marc and Michelle's gross income? Answer is complete and correct. Description Amount Corporate bond interest Michelle's salary Marc's salary Gross income 500 12.000 64.000 76.500 b. What is Marc and Michelle's adjusted gross income? Answer is not complete. Adjusted gross c. What is the total amount of Marc and Michelle's deductions from AGI? Answer is not complete. Total deductions from AGI d. What is Marc and Michelle's taxable income? & Answer is not complete. Taxable income e. What is Marc and Michelle's taxes payable or refund due for the year? Answer is not complete. Taxes payable 2019 Tax Rate Schedules Individuals Schedule X-Single at aver: The tax is: If taxable income is over: But not over: $ 9,700 SO 10% of taxable income B $ 9,700 $ 39,475 S970 plus 12% of the excess over $9.700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628,50 plus 35% of the excess over $204,100 $510,300 $153,798.50 plus 37% of the excess over $510,300 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0 $ 19,400 10% of taxable income $ 19,400 $ 78,950 $1,940 plus 12% of the excess over $19.400 $ 78,950 $168,400 $9,086 plus 22% of the excess over $78,950 $168,400 $321,450 $28,765 plus 24% of the excess over $168,400 $321,450 $408,200 $65,497 plus 32% of the excess over $321,450 $408,200 $612,350 $93,257 plus 35% of the excess over $408,200 $612,350 $164.709.50 plus 37% of the excess over $612,350 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,850 10% of taxable income $ 13,850 S 52,850 $1,385 plus 12% of the excess over $13,850 $ 52,850 S 84,200 56,065 plus 22% of the excess over S52,850 $ 84,200 $160,700 $12,962 plus 24% of the excess over $84,200 $160,700 S204,100 $31,322 plus 32% of the excess over $160,700 $204,100 $510,300 $45,210 plus 35% of the excess over $204,100 $510,300 S152,380 plus 37% of the excess over $510,300 Schedule Y-2-Married Filing Separately
