Question: Please show your computation step by step on how much their tax refund on 2021 (please use 2021 tax rate) 47. Comprehensive Problem. Andy and
Please show your computation step by step on how much their tax refund on 2021 (please use 2021 tax rate)
47. Comprehensive Problem. Andy and Marcia Tufts, both age 35, are married with two children and file a joint return. Assume the children do not qualify for the child tax credit (Ch. 9), and the mortgage is not over $750,000. They are each provided health insurance by their employer. The dividends are not qualified and are taxable as ordinary income. From the following information, compute their tax owed or refund due for 2021. Andy's salary $50,000 Federal income tax withheld 4,000 Marcia's salary 42,000 Federal income tax withheld 5,000 Andy's contribution to an IRA (assume IRA is deductible for AGI) 2,000 Nonqualified dividends received 950 Medical expenses for doctors and hospitals 13,200 Health insurance reimbursement 6,000 Prescription drugs and medicines 5,800 Eyeglasses for one of the children 175 Interest on home mortgage 12,800 Interest on credit cards 300 Real property taxes on residence 6,300 State income taxes 5,800 Fee for preparation of tax returns 125 Union dues and subscriptions 480