Madison's gross tax liability is $11,900. Madison had $3,070 of tax credits available and she had $10,800 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 tax payments are $10,800 ($3,070 in tax credits + $7,730 in taxes withheld). Since her gross tax liability is $11,900, this means she still owes $1,100 ($11,900 - $10,800) in taxes. However, since her total tax payments ($10,800) were more than her gross tax liability ($11,900), she is entitled to a refund of the difference, which is $1,970 ($10,800 - $8,830). Therefore, Madison's taxes due (or taxes refunded) is $1,970 tax refund.

Madison's Gross Tax Liability Is $11,900