Question
The information below is available for Don and Myla Hopeful, a married couple filing a joint return, for 2020. Don is 34 and Myla is
The information below is available for Don and Myla Hopeful, a married couple filing a joint return, for 2020. Don is 34 and Myla is 32 years of age and have no dependents.
Salaries $210,000
Interest income 6,000
Deductible IRA contributions 11,000
Gambling winnings 3,000
Itemized deductions 25,600
Withholding 31,000
Required;
a. What is the amount of their gross income?
b. What is the amount of their adjusted gross income?
c. What is the amount of their taxable income?
d. What is the amount of their tax liability (gross tax), rounded to the nearest dollar?
e. What is the amount of their tax due or (refund due)?
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