Reference no: EM132980882

Question - Sonny and Cher are married, both are 40, they live in Atwater, California, and maintain a home for their two dependent children Chastity and Chaz, ages 7 and 11. Sonny and Cher own their home outright, having inherited it from Sonny's mother. Sonny has a job and earned $36,500 wages this year, 2020. Cher had a job early in the year, and earned $2,600 wages at it, but has been a full time student (and not working) for the last five months of the year. Cher is pursuing a Masters degree at U. C. Merced, and all of her tuition and required fees of $8,000 were paid for through a scholarship she qualified for. The childcare expenses Sonny and Cher paid for during the time Cherwas at work/school were $ 3,100 for Chastity and $ 3,400 for Chaz. Sonny and Cher had withholding from their paychecks in the following amounts federal income taxes of $800 for Sonny, $ 210 for Cher, state income taxes of $ 250 for Sonny, none for Cher, and for social security $2,263 for Sonny and $ 161 for Cher, and for medicare of $ 529 for Sonny and $ 38 for Cher.  Sonny also received $ 950 of interest income on his bank savings account.

For Sonny and Cher for 2020, what is the tax due/refund, include AGI, taxable income, and supporting calculations to prove refundable amounts?