Question: William A. Gregg, a high school educator, and Mary W. Gregg, a microbiologist, are married and file a joint income tax return for 2016. Neither William nor Marry is over 50 years old, and both have excellent sight. They provide the sole support of their three children:Barry, Kimberly, and Rachel (all under age 17). The following information is from the records for 2016:
Salaries, and wages, William .................... 34,550
Federal income tax withheld ................ 2,320
Salaries, and wages, Mary ........................ 44,800
Federal income tax withheld ................. 4,360
Interest income- Home Saving and Loan ...... 690
Interest income- City Bank ........................ 220
Tax-exempt interest income ...................... 1,400
Itemized deductions as follows:
Hospitalization insurance ...................... 320
Unreimbursed fees of doctors, hospitals .. 740
Unreimbursed prescription drugs ............ 310
Real estate taxes on residence ............... 1,350
State income taxes paid ........................ 1,440
State sales taxes paid ........................... 720
Interest paid on original home mortgage .. 8,430
Charitable contribution- Faith Church ....... 1,720
Charitable contribution- State University .. 200
Quarterly estimated taxes paid ............... 3,500
Calculate the 2016 Federal income tax and due (or refund) for the Gregg's assuming they file a joint return.