Amber and Trent are married filing a joint return and have $13,000 in taxable income. They qualified for $6,557 in earned income tax credits, and their marginal tax rate is 10%. If they had $1,200 in federal taxes withheld, determine their tax due or refund to be received? (Rounded to nearest dollar.)

Question

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Their tax liability is $1,300 (10% of $13,000). With $6,557 in earned income tax credits and $1,200 withheld, they have a total of $7,757 in credits/payments. Subtracting their tax liability from this amount results in a $6,457 refund.

Amber and Trent Are Married Filing a Joint Return and Have