Reference no: EM132893429

Question - Eddie & Kristen had an interesting year in 2020. First of all, they got married on March 28, 2020, when they were both 26 years of age. Unfortunately, a distant aunt passed away, leaving them $10,000 of life insurance proceeds in 2020, which they used to pay for part of the wedding. Kristen's parents gave them another $15,000 to pay for the rest of the wedding. Eddie had $50,000 of taxable gross salary and Kristen had $40,400 of taxable gross salary. They were very blessed with gifts at their wedding, so they had a robust amount of investment income in 2020. They had $2,900 of interest, total dividends of $4,200 of which $3,200 were qualified, from their Morgan Stanley account. They also bought bonds from their local school district where Kristen teaches that paid them $2,000 of interest income. Eddie received an achievement award at work for finally becoming certified in his field that was worth $200. Additionally, he got a pair of safety shoes free from his employer that are worth $200. Work was nuts for Eddie and his employer provided meals for him and his team three nights a week for a few weeks at work so they could work extra hours to get the backlog at work caught up. Those meals were worth $120 to each employee. Eddie & Kristen do not have enough itemized deductions to itemize. Eddie and Kristen had $9,750 of Federal income tax withheld in 2020. They welcomed their first child, Edward III, on December 31, 2020. How much tax must they pay (get as a refund) in 2020, after applying any witholdings or credits?