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Comprehensive Problem 4-55 (LO 4-1, LO 4-2, LO 4-3) (Algo)

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[The following information applies to the questions displayed below.] Marc and Michelle are married and earned salaries this year of $67,600 and $13,350, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $950 from corporate bonds. Marc contributed $2,950 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,950 (under a divorce decree effective June 1, 2006). Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $3,000 child tax credit for Matthew. Marc and Michelle paid $6,900 of expenditures that qualify as itemized deductions (no charitable contributions) and they had a total of $3,130 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)

Comprehensive Problem 4-55 Part f (Algo)

Complete Marc and Michelles Form 1040, pages 1 and 2, and Schedule 1 (use the most recent form available).

Marc and Michelles address is 19010 N.W. 135th Street, Miami, FL 33054.

Social security numbers:

Marc Taxpayer: 111-22-3333 Michelle Taxpayer: 222-33-4444

Matthew Taxpayer: 333-44-5555 Prior Spouse 111-11-1111