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. $($Use the tax rate schedules.$)$

Required:

What is Marc and Mikkel's gross income?

What is Marc and Mikkel's adjusted gross income?

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

What is Marc and Mikkel's taxable income?

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

Answer rating: 100% (QA)

Answer Marc and Mikkels Tax Calculations 1 Gross Income Marcs salary 64000 Mikkels salary 12000 Taxa... View the full answer