Reference no: EM133016559
Question - Maud and Miles Miller, both age 43, have the following information for their taxes. Maud earns $60,000 as manager of a local business; she contributes 5% of her salary to her 401(k) and her employer matches dollar for dollar up to 3%. Miles is a high school principal earning $75,000; he is covered by the school's pension plan where he contributes 5% and it is matched dollar for dollar by the school district. They earned $600 in interest and $800 in ordinary dividends. Maud and Miles have two children-Merry, age 7 and Mathias, age 14.
Note: Salaries are quoted before salary reductions for 401(k) and pension plan.
They each contributed $5,000 to their IRA.
They contributed $5,000 to their church.
They contributed $800 to the United Way.
They had unreimbursed medical expenses of $10,000.
That had $6,700 withheld for state income taxes.
They had $13,500 withheld for federal income taxes.
They paid $4,000 in real estate taxes.
They paid $12,000 in mortgage interest.
They received $1,500 in a state income tax refund in April. They itemized deductions last year.
Maud received a bonus of $17,000 from her employer this year. No contribution to the 401(k) was withheld on the bonus.
They spent $6,000 for child care for Merry.
Mathias has a paper route. He earned $700 delivering papers and $400 in interest.
Required - What is Maud and Miles's total income (line 7b on Form 1040)?
a. $148,150
b. $146,650
c. $131,150
d. $154,900