Question

- Puul Help Save & E Chech Required information The following information applies to the questions displayed below] Marc and Michelle 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 an individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500. 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 $2.000 child tax credit for Matthew. Marc and Michelle paid $6,000 of expenditures that qualify as itemized deductions and they had a total of $3,500 in federal income taxes withheld from their paychecks during the course of the year. (Use the tax rate schedules.) Leren a. What is Marc and Michelle's gross income? Description Amount

Answer 1

Gross Income includes income from Schedule B.c, D, E,F & wages/salaies ( For w2 prom employes) As Marc & Michelle is felling "massiod couple jantly then as yooes Income Caliulahon $76000 Salaues. Sch B Income Munupal Bondanterest ఆకాంం Bond Interest yoos Income $76500 Form 1040 Gross gncome Adyustments ($2500) IRA deduchon Alimony paid Adjusted groes tnome $74000 Standaid, dealn ($24000) (-) o79 emued dean $50000 tex rate tax, tabetity Teutable Inuee tae credits Child taauedit With holding lea [$200 $3500)

Page No. Date O Municupal Bond Snterest is dae evempit (2) IRA deduchon is alloved as adycstment Alumony paid no more allowed as adpusment Rgseoment entered Dec 2018 O Standaid deduchon allowed foe mamied felleng gaintly is $24000 standaid deduchon 5) Lou Highel mued dleduchos ($6000) $94000 allowed to be deducted Tax rate is not speuty, hence. cafeulghon of tewe 'luabeluty calculahon not done