Reference no: EM132035074
Question - During all of 2015, Mr. and Mrs. Clay lived with their four children (all are under the age of 17). They provided over one-half of the support for each child. Mr. and Mrs. Clay file jointly for 2015. Neither is blind, and both are under age 65. They reported the following tax-related information for the year.
Salary income $125,000
Prize from local radio station 1,500
Medical expenses (no health insurance) 4,000
Real estate taxes 4,200
Alimony paid by Mr. Clay 12,000
State income taxes withheld in 2015 1,800
State income taxes paid with 2015 tax return (return was filed in April, 2016) 1,500
Federal income tax withholding 7,500
Qualified home mortgage interest 11,000
Charitable contributions 4,000
A. What is the Clays' taxes payable or (refund due) (ignore the alternative minimum tax)?
B. What is the Clays' tentative minimum tax and alternative minimum tax?