Question

Sue and Bill are married. They have 2 children under 17 years old. They qualify for the $2000 child tax credit for both children. Everyone in the family was covered with health insurance for the entire year in 2018 Their total wages combined are $78,928 Federal tax withheld for both of them is $6495 Interest income $575 Tax exempt interest $275 After tax medical paid $6587 Mortgage interest paid $9300 The acquisition debt for the mortgage is $385,000 Property taxes paid $6275 State, City and School district taxes paid $4578 Student loan interest paid for Sue $3275 Student loan interest paid for Bill $575 Cash donations to a several charitable organizations was $5200 Please calculate the refund or amount due based on the above information. Please show all of your work for credit. Need completed ASAP

Answer 1

Total wages combined are $78,928.

Interest income   $575

less:

Tax exempt interest $275

After tax medical paid $6587

Mortgage interest paid $9300

Property taxes paid $6275

State, City and School district taxes paid $4578

Student loan interest paid for Sue $3275

Student loan interest paid for Bill $575

Cash donations $5200

Total Taxable Income would be: $43438

Tax to be paid by Sue and Bill: 12% of $43438 i.e $ 5212.56.

Federal tax withheld for both of them is $6495

As the Federal tax withheld is more than the total tax payable by them they can get a refund of $ 1283