The Johnsons are buying a home that has monthly mortgage payments of $ 3000 or $36000 a year. Of this amount, $ 32800 goes for interest and real estate property taxes. The couple has an additional $ 14000 in itemized deduction. Using these numbers and Table 4-3, calculate their taxable income and tax liability.
Assuming they had a combined $ 18000 in federal income taxes withheld, how much of a refund will the Johnsons receive?
What is their Marginal Tax Rate?
Based on Gross Income, What is their average Tax rate?