Jeff and Kathy O'Connor File a 1040 Jointly

question 46

Essay

Jeff and Kathy O'Connor file a 1040 jointly. Jeff earned $39,000 and Kathy earned $13,700 working part time. The O'Connors have four children. Jeff contributed $3,500 to his IRA. They had $5,200 in medical and dental expenses. They paid $4,390 in real estate taxes, $7,260 in mortgage interest, and made $1,500 in charitable contributions. Together they had $1,825 withheld for income tax during the year. Using a tax table, how much additional tax do they owe or what is their refund?

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Definitions:

Direct Materials

Raw materials that are directly traceable to the production process and are a part of the finished product.

Flexible Budget

An adaptable financial plan that changes according to the actual output levels or activities of a business.

Units

A measure of product quantity, either as individual items or a standard measurement used for inventory and production.

Client-Visits

The activity of going to see clients in person for business purposes such as consultations, sales presentations, and relationship building.