Question: JayJay and CeeCee both work for JZ Corporation where JayJay earns $45,000 and CeeCee earns $65,000. JZ Corporation doesnt have a retirement plan for their

JayJay and CeeCee both work for JZ Corporation where JayJay earns $45,000 and CeeCee earns $65,000. JZ Corporation doesnt have a retirement plan for their employees. The following is information related to their taxes for the current tax year. If the couple owes $1,256 on their taxable income what is their final tax liability/refund after taking credits for which they qualify?

Gross income $???

JayJays Traditional IRA contribution $3,000

Refundable Credit $2,500

CeeCees Traditional IRA contribution $5,000

Standard deduction $15,400

Total itemized deductions $16,200

Marginal tax rate 25 percent

A. $296; Liability

B. $1,244; Liability

C. $1,244; Refund

D. $1,296; Refund

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