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15 November, 06:01

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 is Madison's taxes due (or taxes refunded) with her tax return? $0 taxes due and $0 tax refund. $6,000 taxes due. $2,000 tax refund. $1,000 taxes due. None of the choices are correct.

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  1. 15 November, 09:57
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    correct option is $2,000 tax refund

    Explanation:

    given data

    gross tax liability = $9,000

    tax credits = $3,000

    taxes withheld = $8,000

    solution

    we get here taxes due with tax return that is express as

    tax refund = Gross tax liability - tax credits - taxes withheld ... 1

    put here value we will get tax refund

    tax refund = $9,000 - $3,000 - $8,000

    tax refund = $2,000

    so correct option is $2,000 tax refund
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