Business Mathematics Brief 12th Edition by Stanley Salzman ,Gary Clendenen, Charles Miller

Exercise 15

Find the tax refund or tax due for the following people. The letter following the names indicates the marital status. Assume a 52-week year and that married people are filing jointly. (See Example.)
Determining Tax Due or Refund
At age 29, Jim Clark works as a petroleum engineer for ExxonMobil, where he helps design deep, complex wells being drilled offshore Africa. His wife stays at home and takes care of their toddler. His salary last year was $123,500, and $1210 was withheld from each monthly paycheck. They file a joint return and use the standard deduction. Find the amount of income tax due to the IRS or the amount overpaid, as applicable.
SOLUTION

The Clarks must send an additional $2930 in income taxes to the IRS with their income-tax return. Depending on the state in which they live, they may also owe some state income taxes. Although a few states do not have income taxes, most states do have them.