Reference no: EM132519575
Jennifer and Jason Greco are married and file a joint tax return. Their two dependent children (Jim, age 14, and Jessica, age 16); both live at home. The Grecos have the following income and expenses:
income Jennifer Salary $120,000,
Jason's net profit from his consulting sole proprietorship (which paid $30,000 in W-2 wages) $148,000,
Interest income on State of Texas bonds $10,000,
interest income on corporate bonds $12,000,
Cash dividends $19,000, and
Long-term capital gain from sale of stock.
Expenses are interest on the $850,000 principal from their home acquisition mortgage ( acquired in 2018) $48,000,
Real property taxes on their home $11,000,
Charitable contributions to their church $49,000,
Federal income tax withheld from Jennifer's salary $35,000, and
Estimated federal tax payments for this year $20,000.
Question a. What is their adjusted griss income and taxable income for 2019?
Question b. What is their net tax due or refund expected for 2019?