Question

It's Income tax season: Will they have to pay taxes or get a refund? What will be the tax amount due or refunded?

Use the following information to find the amount of tax due or refund due, if any using the most recent tax rates (2019). David and Melissa are filing married jointly. David's wage is $60,000 Melissa's wage is $65,000 Have a 15 year old daughter who qualifies for the child tax credit. David's income tax withholding from wages is $5,500 Melissa income tax withholding from wages is $6,000 Interest income from checkings = $3,500 Dividend income from brokerage account = $5,000 "No dividends are qualified* itemized Deductions are the following: 15,000 property tax paid $6,000 mortgage interest (all deductible) $3,000 charitable contributions $3,500 of sales tax paid

Answer 1

Ans:David and melissa are married and filing jointly return;

Particulars	Amount($)
David wages	$60,000
Melissa wages	$65,000
Add: Interest income from checkings	$3500
Add: Dividend income from brokerage account	$5,000
Total taxable income	$133,500
Less: standard deduction	(24,400)
Less: itemized deduction
Property tax	15,000
Mortgage interest	6,000
Charitable Contributions	3,000
Sales tax paid	3,500
Total itemized deduction	27,500
More of standard deduction or itemized deduction	$27,500
Taxable income(133,500-27,500)	$106,000