Marc and Mikkel are married and earned salaries this year of $64,800 and $16,800, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $900 from corporate bonds. Marc contributed $2,900 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,900 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,800 of expenditures that qualify as itemized deductions, and they had a total of $3,125 in federal income taxes withheld from their paychecks during the year. What is Marc and Mikkel's taxable income? What is Marc and Mikkel's taxes payable or refund due for the year?

Marc and Mikkel are married and earned salaries this year of $64,800 and $16,800, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $900 from corporate bonds. Marc contributed $2,900 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,900 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,800 of expenditures that qualify as itemized deductions, and they had a total of $3,125 in federal income taxes withheld from their paychecks during the year. What is Marc and Mikkel's taxable income? What is Marc and Mikkel's taxes payable or refund due for the year?

CONCEPTS IN FED.TAX.,2020-W/ACCESS

20th Edition

ISBN:9780357110362

Author:Murphy

Publisher:Murphy

Chapter16: Tax Research

Section: Chapter Questions

Problem 50RC

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