Marc and Mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules for 2022)

Complete pages 1 and 2 of Form 1040 for Marc and Mikkel. (Use the most recent form available).
Transcribed Image Text:€1040 2022 Filing Status Single Married filing jointly Married filing separately (MFS) Check only one box. Your first name and middle initial If joint return, spouse's first name and middle initial Home address (number and street). If you have a P.O. box, see instructions. Foreign country name City, town, or post office. If you have a foreign address, also complete spaces below. If more than four dependents, Department of the Treasury-Internal Revenue Service U.S. Individual Income Tax Return see instructions and check here OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space. Head of household (HOH) Qualifying surviving spouse (QSS) If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child's name if the qualifying person is a child but not your dependent: Income Attach Form(s) W-2 here. Also attach Forms W-2G and 1099-R if tax was withheld. Age/Blindness You: Were born before January 2, 1958 Dependents (see instructions): (1) First name If you did not get a Form W-2, see instructions. Attach Sch. B if required. Standard Deduction for- Single or Married filing separately, $12,950 • Head of household, $19,400 Last name Digital At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell, Assets exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.) Standard Someone can claim: You as a dependent Your spouse as a dependent Deduction Spouse itemizes on a separate return or you were a dual-status alien Last name с d Last name Z Add lines 1a through 1h 2a Tax-exempt interest 3a Qualified dividends 4a IRA distributions . 5a Pensions and annuities 7 • Married filing 8 9 jointly or Qualifying surviving spouse, 10 $25,900 11 12 • If you checked 13 any box under Standard Deduction, 14 15 see instructions. State Foreign province/state/county 1a Total amount from Form(s) W-2, box 1 (see instructions) b Household employee wages not reported on Form(s) W-2 Tip income not reported on line 1a (see instructions) Medicaid waiver payments not reported on Form(s) W-2 (see instructions) e Taxable dependent care benefits from Form 2441, line 26 f Employer-provided adoption benefits from Form 8839, line 29 g Wages from Form 8919, line 6. h Other earned income (see instructions) i Nontaxable combat pay election (see instructions) Are blind Spouse: (2) Social security number ZIP code 1i For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions. Apt. no. 2a b Taxable interest 3a b Ordinary dividends 4a b Taxable amount 5a b Taxable amount. 6a Social security benefits 6a b Taxable amount. с If you elect to use the lump-sum election method, check here (see instructions) Capital gain or (loss). Attach Schedule D if required. If not required, check here Other income from Schedule 1, line 10 Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income Adjustments to income from Schedule 1, line 26 Subtract line 10 from line 9. This is your adjusted gross income Standard deduction or itemized deductions (from Schedule A) Qualified business income deduction from Form 8995 or Form 8995-A Add lines 12 and 13. Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income Your social security number Foreign postal code your tax or refund. You Spouse's social security number Presidential Election Campaign Check here if you, or your spouse if filing jointly, want $3 to go to this fund. Checking a box below will not change Cat. No. 11320B Was born before January 2, 1958 Is blind (3) Relationship (4) Check the box if qualifies for (see instructions): to you Child tax credit Credit for other dependents ·☐☐ 1a 브의의미르치며 1b 1c 1d 1e 1f 1g 1h 1z 2b 3b 4b 5b 6b Yes 7 8 9 10 11 12 13 14 15 Spouse No Form 1040 (2022)
Transcribed Image Text:Form 1040 (2022) Tax and Credits 16 17 18 19 20 21 22 23 24 Payments 25 If you have a qualifying child, attach Sch. EIC. Refund Direct deposit? See instructions. 34 35a b d 36 Amount 37 You Owe Third Party Designee Sign Here Joint return? See instructions. Keep a copy for your records. Paid Preparer Use Only a Form(s) W-2 b Form(s) 1099 с d 26 27 28 29 30 31 32 33 Tax (see instructions). Check if any from Form(s): 1 Amount from Schedule 2, line 3 Add lines 16 and 17. Child tax credit or credit for other dependents from Schedule 8812 Amount from Schedule 3, line 8 Add lines 19 and 20. Subtract line 21 from line 18. If zero or less, enter -0- Other taxes, including self-employment tax, from Schedule 2, line 21 Add lines 22 and 23. This is your total tax Federal income tax withheld from: Other forms (see instructions) Add lines 25a through 25c. 2022 estimated tax payments and amount applied from 2021 return Earned income credit (EIC). Additional child tax credit from Schedule 8812 American opportunity credit from Form 8863, line 8. Reserved for future use. Subtract line 33 from line 24. This is the amount you owe. For details on how to pay, go to www.irs.gov/Payments or see instructions. Estimated tax penalty (see instructions) Designee's name 8814 2 4972 Amount from Schedule 3, line 15 Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits Add lines 25d, 26, and 32. These are your total payments If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid Amount of line 34 you want refunded to you. If Form 8888 is attached, check here Routing number c Type: Checking Account number Amount of line 34 you want applied to your 2023 estimated tax Spouse's signature. If a joint return, both must sign. Phone no. Preparer's name 38 38 Do you want to allow another person to discuss this return with the IRS? See instructions Date Firm's name Firm's address Go to www.irs.gov/Form 1040 for instructions and the latest information. Preparer's signature 3 Phone no. 25a 25b 25c Email address 27 28 29 30 31 36 Spouse's occupation Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge. Your signature Your occupation Date Savings Date 16 17 18 19 20 21 22 23 24 25d 26 32 33 34 35a 37 Yes. Complete below. No Personal identification number (PIN) PTIN If the IRS sent you an Identity Protection PIN, enter it here (see inst.) Page 2 If the IRS sent your spouse an Identity Protection PIN, enter it here (see inst.) Phone no. Firm's EIN Check if: Self-employed Form 1040 (2022)

Question

Marc and Mikkel are married and earned salaries this year of $64,000 and $12,000, respectively. In addition to their salaries, they received interest of $350 from municipal bonds and $500 from corporate bonds. Marc contributed $2,500 to a traditional individual retirement account, and Marc paid alimony to a prior spouse in the amount of $1,500 (under a divorce decree effective June 1, 2006). Marc and Mikkel have a 10-year-old adopted son, Mason, who lived with them throughout the entire year. Thus, Marc and Mikkel are allowed to claim a $2,000 child tax credit for Mason. Marc and Mikkel paid $6,000 of expenditures that qualify as itemized deductions, and they had a total of $2,500 in federal income taxes withheld from their paychecks during the year. (Use the tax rate schedules for 2022)

Complete pages 1 and 2 of Form 1040 for Marc and Mikkel. (Use the most recent form available).

€1040
2022
Filing Status Single Married filing jointly Married filing separately (MFS)
Check only
one box.
Your first name and middle initial
If joint return, spouse's first name and middle initial
Home address (number and street). If you have a P.O. box, see instructions.
Foreign country name
City, town, or post office. If you have a foreign address, also complete spaces below.
If more
than four
dependents,
Department of the Treasury-Internal Revenue Service
U.S. Individual Income Tax Return
see instructions
and check
here
OMB No. 1545-0074 IRS Use Only-Do not write or staple in this space.
Head of household (HOH) Qualifying surviving
spouse (QSS)
If you checked the MFS box, enter the name of your spouse. If you checked the HOH or QSS box, enter the child's name if the qualifying
person is a child but not your dependent:
Income
Attach Form(s)
W-2 here. Also
attach Forms
W-2G and
1099-R if tax
was withheld.
Age/Blindness You: Were born before January 2, 1958
Dependents (see instructions):
(1) First name
If you did not
get a Form
W-2, see
instructions.
Attach Sch. B
if required.
Standard
Deduction for-
Single or
Married filing
separately,
$12,950
• Head of
household,
$19,400
Last name
Digital At any time during 2022, did you: (a) receive (as a reward, award, or payment for property or services); or (b) sell,
Assets exchange, gift, or otherwise dispose of a digital asset (or a financial interest in a digital asset)? (See instructions.)
Standard Someone can claim: You as a dependent Your spouse as a dependent
Deduction Spouse itemizes on a separate return or you were a dual-status alien
Last name
с
d
Last name
Z Add lines 1a through 1h
2a Tax-exempt interest
3a Qualified dividends
4a IRA distributions .
5a Pensions and annuities
7
• Married filing
8
9
jointly or
Qualifying
surviving spouse, 10
$25,900
11
12
• If you checked 13
any box under
Standard
Deduction,
14
15
see instructions.
State
Foreign province/state/county
1a
Total amount from Form(s) W-2, box 1 (see instructions)
b Household employee wages not reported on Form(s) W-2
Tip income not reported on line 1a (see instructions)
Medicaid waiver payments not reported on Form(s) W-2 (see instructions)
e Taxable dependent care benefits from Form 2441, line 26
f
Employer-provided adoption benefits from Form 8839, line 29
g Wages from Form 8919, line 6.
h Other earned income (see instructions)
i Nontaxable combat pay election (see instructions)
Are blind Spouse:
(2) Social security
number
ZIP code
1i
For Disclosure, Privacy Act, and Paperwork Reduction Act Notice, see separate instructions.
Apt. no.
2a
b Taxable interest
3a
b Ordinary dividends
4a
b Taxable amount
5a
b Taxable amount.
6a Social security benefits
6a
b Taxable amount.
с
If you elect to use the lump-sum election method, check here (see instructions)
Capital gain or (loss). Attach Schedule D if required. If not required, check here
Other income from Schedule 1, line 10
Add lines 1z, 2b, 3b, 4b, 5b, 6b, 7, and 8. This is your total income
Adjustments to income from Schedule 1, line 26
Subtract line 10 from line 9. This is your adjusted gross income
Standard deduction or itemized deductions (from Schedule A)
Qualified business income deduction from Form 8995 or Form 8995-A
Add lines 12 and 13.
Subtract line 14 from line 11. If zero or less, enter -0-. This is your taxable income
Your social security number
Foreign postal code your tax or refund.
You
Spouse's social security number
Presidential Election Campaign
Check here if you, or your
spouse if filing jointly, want $3
to go to this fund. Checking a
box below will not change
Cat. No. 11320B
Was born before January 2, 1958
Is blind
(3) Relationship (4) Check the box if qualifies for (see instructions):
to you
Child tax credit
Credit for other dependents
·☐☐
1a
브의의미르치며
1b
1c
1d
1e
1f
1g
1h
1z
2b
3b
4b
5b
6b
Yes
7
8
9
10
11
12
13
14
15
Spouse
No
Form 1040 (2022)

Form 1040 (2022)
Tax and
Credits
16
17
18
19
20
21
22
23
24
Payments 25
If you have a
qualifying child,
attach Sch. EIC.
Refund
Direct deposit?
See instructions.
34
35a
b
d
36
Amount 37
You Owe
Third Party
Designee
Sign
Here
Joint return?
See instructions.
Keep a copy for
your records.
Paid
Preparer
Use Only
a
Form(s) W-2
b Form(s) 1099
с
d
26
27
28
29
30
31
32
33
Tax (see instructions). Check if any from Form(s): 1
Amount from Schedule 2, line 3
Add lines 16 and 17.
Child tax credit or credit for other dependents from Schedule 8812
Amount from Schedule 3, line 8
Add lines 19 and 20.
Subtract line 21 from line 18. If zero or less, enter -0-
Other taxes, including self-employment tax, from Schedule 2, line 21
Add lines 22 and 23. This is your total tax
Federal income tax withheld from:
Other forms (see instructions)
Add lines 25a through 25c.
2022 estimated tax payments and amount applied from 2021 return
Earned income credit (EIC).
Additional child tax credit from Schedule 8812
American opportunity credit from Form 8863, line 8.
Reserved for future use.
Subtract line 33 from line 24. This is the amount you owe.
For details on how to pay, go to www.irs.gov/Payments or see instructions.
Estimated tax penalty (see instructions)
Designee's
name
8814 2 4972
Amount from Schedule 3, line 15
Add lines 27, 28, 29, and 31. These are your total other payments and refundable credits
Add lines 25d, 26, and 32. These are your total payments
If line 33 is more than line 24, subtract line 24 from line 33. This is the amount you overpaid
Amount of line 34 you want refunded to you. If Form 8888 is attached, check here
Routing number
c Type:
Checking
Account number
Amount of line 34 you want applied to your 2023 estimated tax
Spouse's signature. If a joint return, both must sign.
Phone no.
Preparer's name
38
38
Do you want to allow another person to discuss this return with the IRS? See
instructions
Date
Firm's name
Firm's address
Go to www.irs.gov/Form 1040 for instructions and the latest information.
Preparer's signature
3
Phone
no.
25a
25b
25c
Email address
27
28
29
30
31
36
Spouse's occupation
Under penalties of perjury, I declare that I have examined this return and accompanying schedules and statements, and to the best of my knowledge and
belief, they are true, correct, and complete. Declaration of preparer (other than taxpayer) is based on all information of which preparer has any knowledge.
Your signature
Your occupation
Date
Savings
Date
16
17
18
19
20
21
22
23
24
25d
26
32
33
34
35a
37
Yes. Complete below. No
Personal identification
number (PIN)
PTIN
If the IRS sent you an Identity
Protection PIN, enter it here
(see inst.)
Page 2
If the IRS sent your spouse an
Identity Protection PIN, enter it here
(see inst.)
Phone no.
Firm's EIN
Check if:
Self-employed
Form 1040 (2022)

Accepted Answer

Working note :-   Calculation of tax on the taxable income of Marc & Mickkel

Particulars…