Doug and Lisa Have Determined That Their Tax Liability on Their

question 54

Essay

Doug and Lisa have determined that their tax liability on their joint return is $3,700. They have made prepayments of $1,000 and also are entitled to a $2,000 child tax credit and $2,900 of recovery rebate credit. Assume they did not receive the recovery rebate in advance. What is the amount of their tax refund or taxes due?

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Definitions:

Expected Gain

The predicted benefit or profit derived from an investment or decision, based on probability calculations.

Pooling Risks

The practice of spreading financial risk among a large number of contributors to reduce the risk to individuals.

Insurance Company

A financial institution that offers policies to individuals or entities, offering protection from financial losses in exchange for premiums.

Car Theft

The act of unlawfully taking another's car with the intent to permanently or temporarily deprive the owner of it.