STANDARD DEDUCTION FOR MARRIED FILING JOINTLY IS $25,100

Required Information [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 pald $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. a. What is Marc and Michelle's gross Income? Answer is complete and correct. Description Amount Marc's salary $ 64,000 Michelle's salary 12,000 Corporate bond interest 500 Gross income $ 76,500 b. What Is Marc and Michelle's adjusted gross Income? Answer is complete but not entirely correct. Adjusted gross income $ 51,400 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 $ 15,500 X d. What Is Marc and Michelle's taxable income? Answer is complete but not entirely correct. Taxable income $ S 8,302 x e. What is Marc and Michelle's taxes payable or refund due for the year? Answer is complete but not entirely correct. Refund due $ 3,198 X Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 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 $ 329,850 $29,502 plus 24% of the excess over $172,750 $ 329,850 $ 418,850 $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