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marc and mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. in addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. marc contributed $2,500 to a traditional individual retirement account, and marc paid alimony to a prior spouse in the amount of $1,500 (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 $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. What is Marc and Michelle’s taxes payable or refund due for the year (use the tax rate schedules) ?
marc and mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. in addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. marc contributed $2,500 to a traditional individual retirement account, and marc paid alimony to a prior spouse in the amount of $1,500 (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 $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. What is Marc and Michelle’s taxes payable or refund due for the year (use the tax rate schedules) ?
Final answer:To calculate the taxes payable orrefund duefor Marc and Mikkel, you need to consider their incomes, deductions, and tax credits. Their refund due for the year is $2,500.Explanation:To calculate the taxes payable or refund due for Marc and Mikkel, we need to consider their incomes, deductions, and tax credits. Let's break it down:Calculate total income:Add up Marc and Mikkel's salaries, interest, traditional IRA contribution, and alimony paid. Their total income is $64,000 + $12,000 + $350 + $500 - $2,500 - $1,500 = $73,850.Calculate adjusted gross income (AGI):Subtract the deductions from the total income. Marc and Mikkel's AGI is $73,850 - $6,000 = $67,850.Determine the taxable income:Subtract the child tax credit from the AGI. Marc and Mikkel's taxable income is $67,850 - $2,000 = $65,850.Find the tax bracket:Determine the tax bracket based on the taxable income using the tax rate schedules. Let's assume their taxable income falls into the 22% tax bracket.Calculate the tax amount:Multiply the taxable income by the tax rate. Marc and Mikkel's tax amount is $65,850 x 0.22 = $14,487.Calculate the total tax paid:Add the federal income taxes withheld from their paychecks. Marc and Mikkel's total tax paid is $14,487 + $2,500 = $16,987.Calculate the refund or taxes payable:Subtract the total tax paid from the tax amount. If the result is positive, it represents taxes payable. If the result is negative, it represents a refund. In this case, Marc and Mikkel's refund due is $16,987 - $14,487 = $2,500.Therefore, Marc and Mikkel are eligible for a refund of $2,500 for the year.Learn more about Taxes here:brainly.com/question/16423331#SPJ3...