Marc and Mikkel are married and file a joint tax return. Marc and Mikel earned salaries this year of $65,000 and $18,000, respectively. In addition to their salaries, they received interest of $370 from municipal bonds and $1000 from corporate bonds. Marc contributed $3,000 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,000 (under a divorce decree effective June 1, 2016). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $7,000 of expenditures that qualify as itemized deductions, and they had a total of $2,980 in federal income taxes withheld from their paychecks during the year. a. What is Marc and Mikkel's gross income? b. What is Marc and Mikkel's AGI? c. What is the total amount of Marc and Mikkel's deductions from AGI?
Marc and Mikkel are married and file a joint tax return. Marc and Mikel earned salaries this year of $65,000 and $18,000, respectively. In addition to their salaries, they received interest of $370 from municipal bonds and $1000 from corporate bonds. Marc contributed $3,000 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,000 (under a divorce decree effective June 1, 2016). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikel are
allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $7,000 of expenditures that qualify as itemized deductions, and they had a total of $2,980
in federal income taxes withheld from their paychecks during the year.
a. What is Marc and Mikkel's gross income?
b. What is Marc and Mikkel's AGI?
c. What is the total amount of Marc and Mikkel's deductions from AGI?
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