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Problem 3: The Thompsons are a married couple with two school age children they fully support. Use the following information about their 2021 finances to
Problem 3: The Thompsons are a married couple with two school age children they fully support. Use the following information about their 2021 finances to answer the following question. You may assume that all listed deductions are fully deductible. Salary and Wages Arthur $ 54,000 Federal Income Tax Withheld - Arthur- $ 7,000 Salary & Wages - Melody $ 44,000 Federal Income Tax Withheld - Melody-$ 5,600 Interest Income $ 2,000 Dividend Income $ 1,500 Itemized Deductions $ 14,500 Allmony Paid by Arthur $ 6,000 Contract B-4 1/1/18 Alimony Received by Melody $ 10,000 Contract B-41/1/18 Net Loss from Arthur's Business $( 12,000) Fully Deductible Child Care Credit $ 960 Child Tax Credit $ 4,000. What is the Thompson's taxable income and how much of a refund or tax due is there? USE THE TAX TABLES FOR 2020 TO COMPUTE THE TAX!! SHOW YOUR WORK
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