Question

Based on the following data, would Ann and carl Wilton receive a refund or owe additional taxes? how much?

a) adjusted gross income$49,900
b) itemized deductions$15,220
c) child care tax credit of $180
d) federal income tax withheld$2,900
e) amount for personal exemptions$9,260
d) average tax rate 5 percent

Answer 1

To determine if Ann and Carl Wilton would receive a refund or owe additional taxes, we need to calculate their taxable income and compare it to their federal income tax withheld.

Step-by-step explanation:

To determine whether Ann and Carl Wilton would receive a refund or owe additional taxes, we need to calculate their taxable income and compare it to their federal income tax withheld. Here are the steps:

1. Calculate the taxable income: Taxable income = Adjusted gross income - (Itemized deductions + Amount for personal exemptions)
2. Apply the tax rate: Tax owed = Taxable income * Average tax rate
3. Compare tax owed and federal income tax withheld:
   • If federal income tax withheld > tax owed, Ann and Carl will receive a refund.
   • If federal income tax withheld < tax owed, Ann and Carl will owe additional taxes.

In this case, we do not have the necessary values for the itemized deductions and amount for personal exemptions, so it is not possible to determine if Ann and Carl Wilton would receive a refund or owe additional taxes.