Madison's gross tax liability is $9,000. Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer. What are Madison's taxes due (or taxes refunded)with her tax return?

Question

Quizplus · Accepted Answer

Madison's total credits are $3,000 and her total payments are $8,000, which makes a total of $11,000. This means she overpaid her taxes by $2,000 ($11,000 - $9,000). Therefore, Madison will receive a tax refund of $2,000.

Madison's Gross Tax Liability Is $9,000