Jane and Ed Rochester are married with a two-year-old child who lives with them and whom they support financially. In 2013, Ed and Jane realized the following items of income and expense:
They also qualified for a $1,000 tax credit. Their employers withheld $1,800 in taxes from their paychecks (in the aggregate). Finally, the 2013 standard deduction amount is $12,200 and the 2013 exemption amount is $3,900.
- What is the couple's taxable income?
- What is the refund or balance due?