Individuals

Schedule X$-$Single

$\backslash$table$[[$If taxable income is over:,But not over:,The tax is:$],[$$$10,$$$10,275,10\%$ of taxable income$],[$$$10,275,$$$41,775,$$$1,027\mathrm{.}50$ plus $12\%$ of the excess over $$10,275$Required information

$[$The following information applies to the questions displayed below.$]$

Marc and Mikkel are married and earned salaries this year of $$65,500$ and $$21,000,$ respectively. In addition to their salaries, they received interest of $$350$ from municipal bonds and $$1,250$ from corporate bonds. Marc contributed $$3,250$ to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $$2,250($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 $$2,000$ child tax credit for Mason. Marc and Mikkel paid $$7,500$ of expenditures that qualify as itemized deductions, and they had a total of $$4,150$ in federal income taxes withheld from their paychecks during the year. $($Use the tax rate schedules.$)$

Required:

a$.$ What is Marc and Mikkel's gross income?

b$.$ What is Marc and Mikkel's adjusted gross income?

c$.$ What is the total amount of Marc and Mikkel's deductions from AGI?

d$.$ What is Marc and Mikkel's taxable income?

e$.$ What is Marc and Mikkel's taxes payable or refund due for the year?

$\backslash$table$[[$Required A$,$Required B$,$Required D$,$Required E$]]$

What is Marc and Mikkel's taxable income?