Required information Comprehensive Problem 4-55 (LO 4-1, LO 4-2, LO 4-3) (Static) [The following information applies to the questions displayed below.] Marc and Michelle are married and 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 Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $3,000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.) Individuals Schedule X-Single If taxable income is over: But not over: The tax is: S 0 S 9.950 10% of taxable income $9.950 $ 40.525 $995 plus 12% of the excess over $9,950 $ 40.325 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164.925 S14,751 plus 24% of the excess over $86,375 $164.925 $ 209,425 $33,603 plus 32% of the excess over $164,925 $ 209,425 $ 523,600 $47,843 plus 35% of the excess over $209,425 $ 523,600 $157,804.25 plus 37% of the excess over $523,600 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: S 0 $ 19,900 10% of taxable income $ 19.900 $ 81.050 $1.990 plus 12% of the excess over $19.900 $ 81.050 $ 172,750 $9,328 plus 22% of the excess over $81.050 $ 172,750 S 329,850 $29,502 plus 24% of the excess over $172.750 $ 329,850 S 418,8.50 $67,206 plus 32% of the excess over $329,850 $ 418,850 $ 628,300 $95,686 plus 35% of the excess over $418,850 $ 628,300 $168.993.50 plus 37% of the excess over $628,300 Schedule Z-Head of Household If taxable income is over: But not over: The tax is: S 0 $ 14,200 10% of taxable income $ 14,200 $ 54,200 $1,420 plus 12% of the excess over $14.200 S 54,200 $ 86,350 $6.220 plus 22% of the excess over $54,200 $ 86,350 $164.900 $13,293 plus 24% of the excess over $86,350 $164,900 $ 209,400 $32.145 plus 32% of the excess over $164.900 $ 209,400 $ 523,600 $46,385 plus 35% of the excess over $209,400 $ 523,600 $156,355 plus 37% of the excess over $523,600 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: S 0 $ 9,950 10% of taxable income S 9.950 S 40.525 $995 plus 12% of the excess over $9.950 $ 40.525 $ 86,375 $4,664 plus 22% of the excess over $40.525 $ 86,375 $164.925 $14,751 plus 24% of the excess over $86,375 $164.925 $ 209,425 $33,603 plus 32% of the excess over $164,925 $ 209,425 $ 314,150 $47,843 plus 35% of the excess over $209,425 $314.150 $84.496.75 plus 37% of the excess over $314,150 hiperinc-mediambdacation.com/Media Comeet_Production conting piker_13etakchhaltet b. What is Marc and Michelle's adjusted gross income? Answer is complete but not entirely correct. Adjusted gross income $ 7,500 c. What is the total amount of Marc and Michelle's deductions from AGI? Answer is complete but not entirely correct. Total deductions from AGI $ 23,700 d. What is Marc and Michelle's taxable income? Answer is complete but not entirely correct. Taxable income $ 59,900 e. What is Marc and Michelle's taxes payable or refund due for the year? Answer is complete but not entirely correct. Refund due $ (103)
