Final answer:
The Kokorapolus family's actual tax liability is estimated to be $1,609.25 after adjusting their gross income and considering itemized deductions and exemptions. They are entitled to a refund of $635.75 since they had more tax withheld than their estimated tax liability.
Step-by-step explanation:
To determine the Kokorapolus family's actual tax and the refund they are entitled to, we must perform a sequence of calculations. First, we adjust their gross income by subtracting any adjustments to income. In this case, they have a $1,000 adjustment:
Gross Income: $35,836
Adjustments to Income: -$1,000
Adjusted Gross Income (AGI): $34,836
Next, we subtract their itemized deductions from the AGI:
AGI: $34,836
Itemized Deductions: -$8,906
Taxable Income before exemptions: $25,930
Then, we subtract the exemptions. They have four exemptions of $3,100 each:
Total Exemptions: $3,100 x 4 = $12,400
Taxable Income after exemptions: $25,930 - $12,400 = $13,530
Using the given tax schedule, we estimate the tax:
For a taxable income of $13,530, let's assume a tax rate according to a tax bracket (the exact amount might vary based on the current year's tax brackets). For illustration, if we use the provided calculation method, $837.50 + 0.15 × ($13,530 - $8,375) = $837.50 + $771.75 = $1,609.25. That would be their estimated tax liability.
Now, we calculate their refund:
Withholding Taxes Paid: $2,245
Estimated Tax Liability: $1,609.25
Refund: $2,245 - $1,609.25 = $635.75
Therefore, the Kokorapolus's actual tax liability is estimated to be $1,609.25, and they are entitled to a refund of $635.75.