David and Lilly Fernandez have determined their tax liability on their joint tax re have made prepayments of $2,140 they receive a child tax credit of $2,000, ar of $2,900 (they did not receive this in advance). Assume CARES Act applies. What is the amount of their tax refund or taxes due? Answer is complete but not entirely correct. Description Amount |(1) 7,040 8 2,140 2,000 Total tax |(2) Prepayments (3) Child tax credit (4) Recovery rebate credit 2,900 Tax refund 5,5400
David and Lilly Fernandez have determined their tax liability on their joint tax re have made prepayments of $2,140 they receive a child tax credit of $2,000, ar of $2,900 (they did not receive this in advance). Assume CARES Act applies. What is the amount of their tax refund or taxes due? Answer is complete but not entirely correct. Description Amount |(1) 7,040 8 2,140 2,000 Total tax |(2) Prepayments (3) Child tax credit (4) Recovery rebate credit 2,900 Tax refund 5,5400
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:David and Lilly Fernandez have determined their tax liability on their joint tax return to be $1,500. They
have made prepayments of $2,140 they receive a child tax credit of $2,000, and a recovery rebate credit
of $2,900 (they did not receive this in advance). Assume CARES Act applies.
What is the amount of their tax refund or taxes due?
O Answer is complete but not entirely correct.
Description
Amount
Total tax
7,040 X
|(1)
(2)
Prepayments
Child tax credit
(4)
2,140
(3)
2,000
Recovery rebate credit
Tax refund
2,900
$
5,540
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