Janet and Pat McGuire Are Married and File a 1040

Multiple Choice

Janet and Pat McGuire are married and file a 1040 jointly. Janet earns $28,000 and Pat earns $18,500 for the year. They have two children. They have earned interest income of $240. Janet contributed $2,000 to her IRA and Pat contributed $1,500 to his. Their itemized deductions are $3,750 in medical and dental expenses, $4,500 in real estate taxes, $7,480 in home mortgage interest, $1,000 in student loan interest, $1,100 in personal property taxes, and $675 in charitable contributions. Together, they had $3,200 withheld for taxes. Use a tax table. Which is true about how much Janet and Pat either owe in taxes or have due as a refund?

A) owe $1,802
B) refund of $1,802
C) owe $1,521
D) refund of $1,521