44 - The problem tells you Xavier and Marias W-2 income,...

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50. Xavier and his wife Maria have total W-2 income of $95,558. They will file their tax return married filing jointly. They had a total of $14,117 withheld from their paychecks for federal income tax purposes. Using the tax tables, determine the amount of refund or additional tax due upon filing their tax return. Indicate whether the amount is a refund or additional tax. Answer:
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Unformatted text preview: The problem tells you Xavier and Marias W-2 income, not their taxable income. To determine taxable income (the number necessary to use the tax tables) you need to subtract the permitted deduction of $17,500. Their taxable income is $78,058 giving them tax liability of $12,366. Since they had $14,117 withheld they are entitled to a refund of $1,811 ($14,117 $12,366...
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This note was uploaded on 09/16/2011 for the course ACCOUNTING 145 taught by Professor Eric during the Spring '11 term at Palm Beach Community College.

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