USE 2021 TAX RATES

Marc and Michelle are married and earned salaries this year of $66,800 and $13,050, respectively. In addition to their salaries, they received Interest of $350 from municipal bonds and $850 from corporate bonds. Marc contributed $2,850 to a traditional Individual retirement account, and Marc pald alimony to a prior spouse in the amount of $1,850 (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 $6,700 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $3,120 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 S Marc's salary Michelle's salary Amount 68.800 13,050 Corporate bond interest 850 Gross income $ 80,700 b. What Is Marc and Michelle's adjusted gross Income? Answer is complete and correct. Adjusted gross income s 76,000 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 24,750 X d. What Is Marc and Michelle's taxable income? Answer is complete but not entirely correct. Taxable income 47.750 s e. What is Marc and Michelle's taxes payable or refund due for the year? Answer is complete but not entirely correct. Refund due 260