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. 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. (Use the tax rate schedules.) a. What is Marc and Michelle's gross income? Description Amount Gross income $ b. What is Marc and Michelle's adjusted gross income? Adjusted gross income b. What is Marc and Michelle's adjusted gross income? Adjusted gross income c. What is the total amount of Marc and Michelle's deductions from AGI? Total deductions from AGI d. What is Marc and Michelle's taxable income? Taxable income e. What is Marc and Michelle's taxes payable or refund due for the year? 2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 9.875 $ 9.875 $ 40,125 $ 40,125 $ 85,525 $ 85,525 $163,300 $163,300 $207,350 $207 350 $518,400 $518,400 The tax is: 10% of taxable income $987 50 plus 12% of the excess over $9,875 $4,617 50 plus 22% of the excess over $40,125 $14,605 50 plus 24% of the excess over $85 525 $33,271 50 plus 32% of the excess over $163,300 $47,367 50 plus 35% of the excess over $207,350 $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 Ir taxable income is over: But not over: $ 0 $ 14,100 $ 14,100 $ 53,700 $ 53,700 $ 85,500 $ 85,500 $163,300 $163,300 $207,350 $207,350 $518.400 $518 400 The tax is: 10% of taxable income $1410 plus 12% of the excess over $14,100 $6.162 plus 22% of the excess over $53,700 $13,158 plus 24% of the excess over $85 500 $31.830 plus 32% of the excess over $163 300 $45.926 plus 35% of the excess over $207 350 $154,793 50 plus 37% of the excess over $518.400 Schedule Y-2-Married Filing Separately Ir taxable income is over: But not over The tax is: $ 0 $9.875 10% of taxable income $ 9875 $ 40,125 5987 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 $14.603 50 plus 24% of the ERCOSS Over $83525 $163,300 $207 350 $33.271 50 plus 32% of the excess over $163 300 $207,350 $311.025 547.367 50 plus 55 of the excess over $207 350 $311,025 583.653.75 plus 37% of the excess over $311025