Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information Skip to question [ The following information applies to the questions displayed below. ] Marc and Mikkel are married and file a joint

Required information
Skip to question
[The following information applies to the questions displayed below.]
Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $66,300 and $25,800, respectively. In addition to their salaries, they received interest of $396 from municipal bonds and $1,650 from corporate bonds. Marc contributed $3,650 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,650(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 $8,300 of expenditures that qualify as itemized deductions, and they had a total of $3,604 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)
Marc and Mikkel's gross income - $93,750
Marc and Mikkel's adjusted gross income - $87,450
Total amount of Marc and Mikkel's deductions from AGI - $27,700
Marc and Mikkel's taxable income - $59,750
What is Marc and Mikkel's taxes payable or refund due for the year?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine

5th Canadian edition

978-1118024492

More Books

Students also viewed these Accounting questions