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1 January, 09:20

Madison's gross tax liability is $9,000. Madison had $3,000 of tax credits available and she had $8,000 of taxes withheld by her employer. What are Madison's taxes due (or taxes refunded) with her tax return?

A) $0 taxes due and $0 tax refund.

B) $6,000 taxes due.

C) $2,000 tax refund.

D) $1,000 taxes due.

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Answers (1)
  1. 1 January, 09:31
    0
    C. $2000 tax refund

    Explanation:

    Given that

    Tax liability = 9000

    Tax credits = 3000

    Tax withheld = 8000

    Maddison tax return = Gross tax liability - tax credits - tax withheld

    Therefore

    Tax return = 9000 - 3000 - 6000

    = - 2000.

    This indicates a tax refund of $2,000
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