Unformatted text preview: The problem tells you Xavier and Maria’s 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...
View Full Document
- Spring '11
- Taxation in the United States, Income tax in the United States