Question
Marc and Michelle are married and earned salaries this year of $71,200 and $14,700, respectively. In addition to their salaries, they received interest of $350
Marc and Michelle are married and earned salaries this year of $71,200 and $14,700, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,400 from corporate bonds. Marc contributed $3,400 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,400. 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 $7,800 of expenditures that qualify as itemized deductions and they had a total of $6,695 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)
a. What is Marc and Michelles gross income?
Already completeted, the Gross income is $87,300
b. What is Marc and Michelles adjusted gross income?
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?
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