Question

Base your answers on this scenario: Sally and Jim Jones are married in Texas, a state with no state income tax. They have two children, age 14 and 16, who are claimed by them as dependents. In 2019, the household had no other source of income other than what is shown on Sally's W-2. They rent their home, and made no charitable contributions in 2019. If no information is provided for an item needed on the return, assume that it is zero, e.g. no contribution to an IRA because not listed below. Ignore tax credits Sally's W2 form Box 1 wages: $120,000 Box 2 federal income tax withheld $20,000 When they file their federal income tax return in April 2020, will they receive a refund or have to pay a balance due? Refund Balance Due Unknown No answer text provided

Answer 1

Refund

Description	Amount
(1)Gross Income	$120,000
(2)For AGI Deductions	0
(3)Adjusted Gross Income	$120,000
(4)Standard Deduction	$24,400
(5)Itemized deductions	$0
(6)Greater of standard deduction and itemized deductions	$24,400
(7)Taxable Income	$95,600
(8)Income Tax Tax (9086+(95600-78950)*22%)	$ 12,749
(9)Child Tax credit (2000*2)	$4,000
(10)Tax withholding	$20,000
Income Tax Refund	$ 11,251