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.)

Complete Marc and Michelles Form 1040, pages 1 and 2, and Schedule 1 (use the most recent form available).

Marc and Michelles address is 19010 N.W. 135th Street, Miami, FL 33054.

Social security numbers:

Marc Taxpayer: 111-22-3333 Michelle Taxpayer: 222-33-4444

Matthew Taxpayer: 333-44-5555 Prior Spouse 111-11-1111