50.1K

Verified Solution

Link Copied!

John and Georgia are married, file jointly, and have three dependents (qualifying children ages 13, 16, and 18). They have salaries of $130,000, a capital loss of $8,000, and tax-exempt interest income of $1,000. They paid home mortgage interest of $10,000, state income taxes of $4,000, property taxes of $2,800, medical expenses of $3,000, and charitable contributions of $5,000. Federal income taxes of $11,000 were withheld from their paychecks. (The tax year is 2019.)

Read the requirement3.

Begin by computing their taxable income. (Complete all input fields. Enter a "0" for amounts with a zero balance. Use parentheses or a minus sign to enter a loss.)

(1)
(2)
(3)
(4)
Taxable income

Now compute their additional tax due or refund when they file their tax return. (Use the

2019

tax rate schedule for all tax calculations. Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar. Enter a refund with parentheses or a minus sign.)

(5)
(6)
(7)
(8)
Additional tax due (refund)

1: Reference

STANDARD DEDUCTION

Filing Status
Married individuals filing joint returns and surviving spouses	$24,400
Heads of households	$18,350
Unmarried individuals (other than surviving spouses and heads of households)	$12,200
Married individuals filing separate returns	$12,200
Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses	$1,300*
Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse	$1,650*
Taxpayer claimed as dependent on another taxpayers return: Greater of (1) earned income plus $350 or (2) $1,100.
* These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind.

2: Reference

Married, Filing Joint and Surviving Spouse

If taxable income is:	The tax is:
Not over $19,400. . . . . . . . . . . . .	10% of taxable income.
Over $19,400 but not over $78,950	$1,940.00 + 12% of the excess over $19,400.
Over $78,950 but not over $168,400	$9,086.00 + 22% of the excess over $78,950.
Over $168,400 but not over $321,450	$28,765.00 + 24% of the excess over $168,400.
Over $321,450 but not over $408,200	$65,497.00 + 32% of the excess over $321,450.
Over $408,200 but not over $612,350	$93,257.00 + 35% of the excess over $408,200.
Over $612,350. . . . . . . . . . . . . . .	$164,709.50 + 37% of the excess over $612,350.

3: Requirements

Compute the additional tax due or refund they have when filing their tax return

Answer & Explanation Solved by verified expert

See Answer