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During All of 2014, Mr A What Is the Clays' Taxes Payable or (Refund Due)

Question 144

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During all of 2014, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2014. Neither is blind, and both are under age 65. They reported the following tax-related information for the year Salary incomePrize from local radio stationMedical expenses (no health insurance)Real estate taxesAlimony paid by Mr. ClayState income taxes withheld in 2014State income taxes paid with 2014 tax return (return was filedin April, 2015)Federal income tax withholdingQualified home mortgage interestCharitable contributions$125,0001,5004,0004,20012,0001,8001,5007,50011,0004,000\begin{array}{c}\begin{array}{l}\text{Salary income}\\\text{Prize from local radio station}\\\\\text{Medical expenses (no health insurance)}\\\text{Real estate taxes}\\\text{Alimony paid by Mr. Clay}\\\text{State income taxes withheld in 2014}\\\text{State income taxes paid with 2014 tax return (return was filed}\\\quad\text{in April, 2015)}\\\text{Federal income tax withholding}\\\text{Qualified home mortgage interest}\\\text{Charitable contributions}\\\end{array}\begin{array}{lll}&&\end{array}\begin{array}{r}\$ 125,000 \\1,500 \\\\4,000 \\4,200 \\12,000 \\1,800 \\\\1,500 \\7,500 \\11,000 \\4,000\\\end{array}\end{array} A. What is the Clays' taxes payable or (refund due) (ignore the alternative minimum tax)?
B. What is the Clays' tentative minimum tax and alternative minimum tax?

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A. Tax refund is $1,687.
B. A ...

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