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Marc and Mikkel are married and earned salaries this year of $66,400 and $26,400, respectively. In addition to their salaries, they received interest of
Marc and Mikkel are married and earned salaries this year of $66,400 and $26,400, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,700 from corporate bonds. Marc contributed $3,700 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,700 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $8,400 of expenditures that qualify as itemized deductions (no charitable contributions), and they had a total of $4,195 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)
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