Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2016, Ed and Jane realized the following items of income and expense: $$\begin{array} { | l | r | }
\hline \text { Item } & \text { Amount } \
\hline \text { Ed's Salary } & \$ 35,000 \
\hline \text { Jane's Salary } & 34,400 \
\hline \text { Municipal bond interest income } & 400 \
\hline \text { Alimony paid (for AGl deduction) } & ( 7,000 ) \
\hline \text { Real propery tax (from AGl deduction) } & ( 10,000 ) \
\hline
\end{array}$$ They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2016 standard deduction amount is $12,600 and the 2016 exemption amount is $4,050.
What are the couple's taxes due or tax refund? (use the tax rate schedules not tax tables)

Question

Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2016, Ed and Jane realized the following items of income and expense: $$\begin{array} { | l | r | } 
\hline \text { Item } & \text { Amount } \
\hline \text { Ed's Salary } & \$ 35,000 \
\hline \text { Jane's Salary } & 34,400 \
\hline \text { Municipal bond interest income } & 400 \
\hline \text { Alimony paid (for AGl deduction) } & ( 7,000 ) \
\hline \text { Real propery tax (from AGl deduction) } & ( 10,000 ) \
\hline
\end{array}$$ They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2016 standard deduction amount is $12,600 and the 2016 exemption amount is $4,050.
What are the couple's taxes due or tax refund? (use the tax rate schedules not tax tables)

Quizplus · Accepted Answer

The Answer of Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2016, Ed and Jane realized the following items of income and expense: $$\begin{array} { | l | r | } 
\hline \text { Item } & \text { Amount } \
\hline \text { Ed's Salary } & \$ 35,000 \
\hline \text { Jane's Salary } & 34,400 \
\hline \text { Municipal bond interest income } & 400 \
\hline \text { Alimony paid (for AGl deduction) } & ( 7,000 ) \
\hline \text { Real propery tax (from AGl deduction) } & ( 10,000 ) \
\hline
\end{array}$$ They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2016 standard deduction amount is $12,600 and the 2016 exemption amount is $4,050.
What are the couple's taxes due or tax refund? (use the tax rate schedules not tax tables)

Jane and Ed Rochester Are Married with a Two-Year-Old Child