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Question: Marc and Mikkel are married and file a joint tax return. Marc and Mikkel earned salaries this year of $65,500 and $21,000, respectively. In addition to their salaries, they received interest of $380 from municipal bonds and $1,250 from corporate bonds. Marc contributed $3,250 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $2,250 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $7,500 of expenditures that qualify as itemized deductions, and they had a total of $3,220 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules.)
Complete pages 1 and 2 of Form 1040 for Marc and Mikkel. (Use the most recent form available).
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