Marc and Michelle are married and earned salaries this year of $67,600 and $13,350, respectively. In...

60.1K

Verified Solution

Question

Accounting

Marc and Michelle are married and earned salaries this year of$67,600 and $13,350, respectively. In addition to their salaries,they received interest of $350 from municipal bonds and $950 fromcorporate bonds. Marc contributed $2,950 to an individualretirement account, and Marc paid alimony to a prior spouse in theamount of $1,950. Marc and Michelle have a 10-year-old son,Matthew, who lived with them throughout the entire year. Thus, Marcand Michelle are allowed to claim a $2,000 child tax credit forMatthew. Marc and Michelle paid $6,900 of expenditures that qualifyas itemized deductions and they had a total of $5,950 in federalincome taxes withheld from their paychecks during the course of theyear. (Use the tax rate schedules.)
a. What is Marc and Michelle’s grossincome?
b. What is Marc and Michelle’s adjusted grossincome?
c. What is the total amount of Marc andMichelle’s deductions from AGI?
d. What is Marc and Michelle’s taxableincome?
e. What is Marc and Michelle’s taxes payable orrefund due for the year?

Answer & Explanation Solved by verified expert

3.7 Ratings (546 Votes)

We have not been provided with the tax year in the given case Therefore I have taken 2018 as the tax year and solved the question with reference to tax rules for 2018 There is a possibility of difference in answers Part a The value of Marc and Michelles gross income is derived as below Salaries 67600 13350 80950 See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member