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Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live
Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlenes Social Security number is 123-45-6788, and Jordans Social Security number is 123-45-6787. In 2019, Martin and Michele had the following transactions:
- Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: $7,049 ($113,700 6.2%) for Social Security and $1,740 ($120,000 1.45%) for Medicare. Martin worked in Mexico from January 1, 2018, until February 15, 2019. His $120,000 salary for 2019 includes $18,000 he earned for January and one-half of February 2019 while working in Mexico.
- Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.
- Martin received $2,300 interest from a Bahamian bank account.
- Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.
- Martin and Michele received a $1,200 refund on their 2018 Virginia income taxes. Their itemized deductions in 2018 totaled $34,000.
- Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016.
- Martin and Michele kept the receipts for their sales taxes paid of $1,100.
- Martin and Micheles itemized deductions were as follows:
- State income tax paid and withheld totaled $5,100.
- Real estate taxes on their principal residence were $3,700.
- Mortgage interest on their principal residence was $2,500.
- Cash contributions to the church totaled $2,800.
Compute the Alberts net tax payable (or refund due) for 2019.
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