Question
Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $64,000 and $12,000, respectively. In addition
Marc and Mikkel are married and file a joint tax return. Marc and Mikkel 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 a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (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 $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.).
2023 Tax Rate Schedules
IndividualsSchedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $11,000 | 10% of taxable income |
$ 11,000 | $ 44,725 | $1,100 plus 12% of the excess over $11,000 |
$ 44,725 | $ 95,375 | $5,147 plus 22% of the excess over $44,725 |
$ 95,375 | $ 182,100 | $16,290 plus 24% of the excess over $95,375 |
$ 182,100 | $ 231,250 | $37,104 plus 32% of the excess over $182,100 |
$ 231,250 | $ 578,125 | $52,832 plus 35% of the excess over $231,250 |
$ 578,125 | $174,238.25 plus 37% of the excess over $578,125 |
Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 22,000 | 10% of taxable income |
$ 22,000 | $ 89,450 | $2,200 plus 12% of the excess over $22,000 |
$ 89,450 | $ 190,750 | $10,294 plus 22% of the excess over $89,450 |
$ 190,750 | $ 364,200 | $32,580 plus 24% of the excess over $190,750 |
$ 364,200 | $ 462,500 | $74,208 plus 32% of the excess over $364,200 |
$ 462,500 | $ 693,750 | $105,664 plus 35% of the excess over $462,500 |
$ 693,750 | $186,601.5 plus 37% of the excess over $693,750 |
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 15,700 | 10% of taxable income |
$ 15,700 | $ 59,850 | $1,570 plus 12% of the excess over $15,700 |
$ 59,850 | $ 95,350 | $6,868 plus 22% of the excess over $59,850 |
$ 95,350 | $ 182,100 | $14,678 plus 24% of the excess over $95,350 |
$ 182,100 | $ 231,250 | $35,498 plus 32% of the excess over $182,100 |
$ 231,250 | $ 578,100 | $51,226 plus 35% of the excess over $231,250 |
$ 578,100 | $172,623.5 plus 37% of the excess over $578,100 |
Schedule Y-2-Married Filing Separately
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 11,000 | 10% of taxable income |
$ 11,000 | $ 44,725 | $1,100 plus 12% of the excess over $11,000 |
$ 44,725 | $ 95,375 | $5,147 plus 22% of the excess over $44,725 |
$ 95,375 | $ 182,100 | $16,290 plus 24% of the excess over $95,375 |
$ 182,100 | $ 231,250 | $37,104 plus 32% of the excess over $182,100 |
$ 231,250 | $ 346,875 | $52,832 plus 35% of the excess over $231,250 |
$ 346,875 | $93,300.75 plus 37% of the excess over $346,875 |
Required:
- What is Marc and Mikkel's gross income?
- What is Marc and Mikkel's adjusted gross income?
- What is the total amount of Marc and Mikkel's deductions from AGI?
- What is Marc and Mikkel's taxable income?
- What is Marc and Mikkel's taxes payable or refund due for the year?
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