Ralph and Josee have adjusted gross income of $53,000.They have itemized deductions of $18,000 and incurred $2,000 in college expenses for their daughter who is a freshman at a local community college.They file jointly and have three exemptions at $3,200 each.Compute their tax liability for the current year.
A)$1,580
B)$2,450
C)$2,555
D)$2,780

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11ea7cba_cca3_0b5b_a2ab_b311015f825b_TB4757_00 Exhibit 4.6,Panel B - $1,460 + $1,620 (($25,400 - $14,600)× 0.15)= $3,080 - $1,500 (college expense credit)= $1,580 College expense credit = $1,000 + $500 ($1,000 × 0.5)= $1,500 Question Status: Existing/Old 4.7 How Tax Planning Fits within Your Financial Plan True or False

Ralph and Josee Have Adjusted Gross Income of $53,000