Marc and Michelle are married and earned salaries this year of$67,600 and $13,350, respectively. In addition to their salaries,they received interest of $350 from municipal bonds and $950 fromcorporate bonds. Marc contributed $2,950 to an individualretirement account, and Marc paid alimony to a prior spouse in theamount of $1,950. Marc and Michelle have a 10-year-old son,Matthew, who lived with them throughout the entire year. Thus, Marcand Michelle are allowed to claim a $2,000 child tax credit forMatthew. Marc and Michelle paid $6,900 of expenditures that qualifyas itemized deductions and they had a total of $5,950 in federalincome taxes withheld from their paychecks during the course of theyear. (Use the tax rate schedules.)
a. What is Marc and Michelle’s grossincome?
b. What is Marc and Michelle’s adjusted grossincome?
c. What is the total amount of Marc andMichelle’s deductions from AGI?
d. What is Marc and Michelle’s taxableincome?
e. What is Marc and Michelle’s taxes payable orrefund due for the year?
