Jane and Ed Rochester are married with a two-year-old child who lives with them

Question

Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2015, Ed and Jane realized the following items of income and expense:

They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2015 standard deduction amount is $12,600 and the 2015 exemption amount is $4,000.

Item Amount Ed’s Salary $35,000 Jane’s Salary 34,400 Municipal bond interest income 400 Alimony paid (for AGI deduction) (7,000) Qualifying interest expense (from AGI
deduction) (10,000)

Explanation / Answer

Gross income 69,400
AGI adjusted gross income 76,800
Taxable Income 54,450
Tax 7,334 - 1,000 CTC child tax credit = 6,334
End up owing 3,810

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.