Mr. Carlos Santos and Mrs. Velez are married, and they are 50 and 66 years old respectively. Their income consisted of the following sources.

Salaries: Mr. Santos $65,000 and Mr. Velez $ 31,000

Interest received in Federal Bonds $5,000

Interest received in Idaho State Bonds $10,000

Interest received in privateCertificate Deposit Accounts$3,000

Gambling Winnings $6,000

Gift received by their aunt$8,000

Note: Mr. Santos and Mrs. Veles havewithholding tax payments of $4,000 and 3,000, respectively.

Please present a computation or request explanation for each item.

Make the follows calculations:

a.Gross Income (Inclusions) 6 points

b.Adjusted Gross Income: 2 points.

c.Standard Deduction amount: 2 points

d.Additional Standard Deduction (if any): 2 points

e.The taxable income is: (6 points)

f.The Total tax liability: (Please, use the 2021 tax schedules) and indicate what is the marginal tax rate, and average tax rate (6 points)

i.Total Tax Liability and computation

ii.Marginal Tax Rate

iii.Average tax rate

g.The tax payment or refund: (4 points)

II.Please mention in which form or schedule should be included the followings items.

1.They have Salaries: Mr. Rivera $65,000 and Mr. Lopez $ 31,000 _____________

2.Interest received in Federal Bonds $5,000 ______________

3.Interest received in Certificate Deposit Accounts $3,000 ______________

4.Interest received in Idaho State Bonds $10,000

5.Gambling Winnings $6,000 __________

6.Gift received by their aunt 8,000 ___________

7.Withholding tax payments of $4,000 and 3,000______