Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries...
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Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $65,100 and $18,600, respectively. In addition to their salaries, they received interest of $372 from municipal bonds and $1,050 from corporate bonds. Marc contributed $3,050 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,050 (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 $7,100 of expenditures that qualify as itemized deductions, and they had a total of $3,028 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) Required: a. What is Marc and Mikkel's gross income? b. What is Marc and Mikkel's adjusted gross income? c. What is the total amount of Marc and Mikkel's deductions from AGI? d. What is Marc and Mikkel's taxable income? e. What is Marc and Mikkel's taxes payable or refund due for the year? Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $65,100 and $18,600, respectively. In addition to their salaries, they received interest of $372 from municipal bonds and $1,050 from corporate bonds. Marc contributed $3,050 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,050 (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 $7,100 of expenditures that qualify as itemized deductions, and they had a total of $3,028 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) Required: a. What is Marc and Mikkel's gross income? b. What is Marc and Mikkel's adjusted gross income? c. What is the total amount of Marc and Mikkel's deductions from AGI? d. What is Marc and Mikkel's taxable income? e. What is Marc and Mikkel's taxes payable or refund due for the year?
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To calculate Marc and Mikkels gross income adjusted gross income AGI deductions from AGI taxable income and taxes payable or refund due for the year w... View the full answer
Related Book For
Taxation Of Individuals And Business Entities 2016
ISBN: 9781259334870
7th Edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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