Subject Tax Accounting:

Marc and michael are married and earned salaries this year of $ 64,000 and 12,000 respectively. In addition to their salaries, they received interst of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to an individual retirement account. and Mare paid alimony to a prior spouse in the amount of $1500. Marc and michalle have a 10-year-old son, Mathew, who lived with them throughout the entire year. Thus, Marc and michelle are allowed to claim a $2,000 chid tax credit for Mathew, Marc and Michelle paid $6000 of expenditures that qualify as itemized deductions and they had a total of $5,500 in federal income taxes withheld from their paychecks during the course of the year.

a) what is Marc and Michalle's gross income

b) what is Marc and michalle's adjusted gross income

c) what is tha total amount of Marc and Michalle's deducions from AGI

d) What is Marc and Michale's taxable income

e) what is Marc and Michale's taxes payable or refund due for the year? (use the tax rate schedules).

f) Complete the first two pages of Marc and Michelle's form 1040 (use the most recent form available)