Question

Jane and Ed Rochester are married with a 2-year-old child, who lives with them and whom they support financially. In 2019, Ed and Jane realized the following items of income and expense: Item Amount Ed's Salary $ 35,000 Jane's Salary 70,000 Municipal bond interest income 400 Qualified business income 1,000 Alimony paid (for AGI deduction) (7,000 ) Real property tax (from AGI deduction) (10,000 ) Charitable contributions (from AGI) (15,000 ) They also qualified for a $2,000 child tax credit. Their employers withheld $5,800 in federal income taxes from their paychecks (in the aggregate). Finally, the 2019 standard deduction amount for MFJ taxpayers is $24,400. What are the couple's taxes due or tax refund? (Use the tax rate schedules, not tax tables.)

Answer 1

Tax Rates Schedule 2019
	Married Filing Jointly
10%	0$-19,400$
12%	19400$-78950$
22%	78951$-168400$
24%	168401$-321450$
32%	321451$-408200$
35%	408201$-612350$
37%	612351$+
Compuation of Tax Dues or Tax Refund
Particulars	Amount ($)
Ed Salary	35,000
Jane Salary	70,000
Municipal Bond interest income	400
Qualified business income	1,000
Gross Total Income	1,06,400
Less
Standard Deductions	24,400
Itemized Deductions
Alimomy Paid	7,000
Real Property Tax	10,000
Charitable Contribution	15,000
Taxable Income	50,000
Taxes on Above
Upto 19,400$	1,940
19,401$-50,000$	3,672
(50,000$-19,400$)*12%
Total Taxes	5,612
Less: Federal Taxes Withhold	5,800
Less: Child Tax Credit	2,000
Taxes Refund	2,188