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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Q-2

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 2022.) View the standard deduction amounts. View the 2022 tax rate schedule for the Married filing jointly filing status. Requirement Compute the additional tax due or refund they have when filing their tax return. Begin by computing their taxable income. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero. Enter a "0" for amounts with a zero balance. Use parentheses or a minus sign to enter a loss.) Salaries $ Allowable capital loss Adjusted gross income Minus: Standard deduction Taxable income 130,000 (3,000) (11000) 127,000 (25,900) 101,100 Now compute their additional tax due or refund when they file their tax return. (Use the 2022 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.) Gross tax 13476 Minus: Child tax credit Net tax Minus: Withholdings Additional tax due (refund)
Transcribed Image Text: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 2022.) View the standard deduction amounts. View the 2022 tax rate schedule for the Married filing jointly filing status. Requirement Compute the additional tax due or refund they have when filing their tax return. Begin by computing their taxable income. (If an input field is not used in the table leave the field empty; do not select a label or enter a zero. Enter a "0" for amounts with a zero balance. Use parentheses or a minus sign to enter a loss.) Salaries $ Allowable capital loss Adjusted gross income Minus: Standard deduction Taxable income 130,000 (3,000) (11000) 127,000 (25,900) 101,100 Now compute their additional tax due or refund when they file their tax return. (Use the 2022 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.) Gross tax 13476 Minus: Child tax credit Net tax Minus: Withholdings Additional tax due (refund)
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