Selerino and Maria are married and file their taxes jointly. Selerino earned $82,000 in wages last year, while Maria earned $130,000. They also earned $2,150 in interest from their savings account. Selerino and Maria contributed $5600 to their tax-deferred savings account, and had $21,350 in itemized deductions.  They also had $3600  in tax credits and  $26,540 withheld. What is their lowest  taxable income from this information?   Show how to calculate this for full credit. What is their tax  liability?   Show how to calculate this for full credit. What  is the amount of their refund, or  tax they still owe ?  Show how to calculate this for full credit.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Selerino and Maria are married and file their taxes jointly. Selerino earned $82,000 in wages last year, while Maria earned $130,000. They also earned $2,150 in interest from their savings account. Selerino and Maria contributed $5600 to their tax-deferred savings account, and had $21,350 in itemized deductions.  They also had $3600  in tax credits and  $26,540 withheld.

  1. What is their lowest  taxable income from this information?   Show how to calculate this for full credit.
  2. What is their tax  liability?   Show how to calculate this for full credit.
  3. What  is the amount of their refund, or  tax they still owe ?  Show how to calculate this for full credit.
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