Marc and Michelle are married and earned salaries this year of $71,200 and $14,7
ID: 2330500 • Letter: M
Question
Marc and Michelle are married and earned salaries this year of $71,200 and $14,700, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $1,400 from corporate bonds. Marc contributed $3,400 to an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,400. 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 $2,000 child tax credit for Matthew. Marc and Michelle paid $7,800 of expenditures that qualify as itemized deductions and they had a total of $6,695 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.)
a. What is Marc and Michelle’s gross income?
Already completeted, the Gross income is $87,300
b. What is Marc and Michelle’s adjusted gross income?
c. What is the total amount of Marc and Michelle’s deductions from AGI?
d. What is Marc and Michelle’s taxable income?
e. What is Marc and Michelle’s taxes payable or refund due for the year?
Explanation / Answer
salary :-
Marc. - $71200
Michelle - $14700
total. $ 85900
bonds
mun --- $350
corp $1400
alimony -$2400
child tax - $2000
itemized deductions -$7800
tax withheld - $ 6695
a. $87650
b. $87650 -$2400 = $85250.
c.$ 12700+ 12150 = $24850
d. $85250-$24850 =$60400