taxes payable or refund 458719
Marc and Michelle are married and earned salaries this year (2011) of $88,500 and $18,300, respectively. In addition to their salaries, they received interest of $520 from municipal bonds and $720 from corporate bonds. Marc and Michelle also paid $4,200 of qualifying moving expenses, and Marc paid alimony to a prior spouse in the amount of $2,440. Marc and Michelle have a 10-year-old son, Matthew, who lived with them throughout the entire year. Thus, Marc and Michelle are allowed to claim a $1,000 child tax credit for Matthew. Marc and Michelle paid $9,100 of expenditures that qualify as itemized deductions and they had a total of $7,000 in federal income taxes withheld from their paychecks during the course of the year.
Taxable income is $78,180
What is Marc and Michelle’s taxes payable or refund due for the year? (use the tax rate schedules.) (Refunds should be indicated by a minus sign. Omit the “$” sign in your response.)