1. Jeremy earned $200,000 in salary and $5,000 in interest income during the year. Jeremy has two qualifying dependent children who live with him. He qualifies to file as head of household and has $17,500 in itemized deductions. Neither of his dependents qualifies for the child tax credit. (use the 2017 tax rate schedules.). (Do not round intermediate calculations. Round "Income tax liability" to 2 decimal places.)

a. Use the 2017 tax rate schedules to determine Jeremys taxes due.

Description

(1) Gross income $ ? (2) For AGI deductions $ ? (3) Adjusted gross income $ ? (4) Standard deduction $ ? (5) Itemized deductions $ ? (6) Greater of standard deductions or itemized deductions $ ? (7) Personal and dependency exemptions $ ? (8) Taxable income $ ? Income tax liability $ ?

b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $9,500. What is Jeremys tax liability including the tax on the capital gain?

Description

(1) Gross income $ ? (2) For AGI deductions $ ? (3) Adjusted gross income $ ? (4) Standard deduction $ ? (5) Itemized deductions $ ? (6) Greater of standard deductions or itemized deductions $ ? (7) Personal and dependency exemptions $ ? (8) Taxable income $ ? Income tax liability $ ?

c. Assume the original facts except that Jeremy had only $6,000 in itemized deductions. What is Jeremys total income tax liability?

Description

(1) Gross income $ ? (2) For AGI deductions $ ? (3) Adjusted gross income $ ? (4) Standard deduction $ ? (5) Itemized deductions $ ? (6) Greater of standard deductions or itemized deductions $ ? (7) Personal and dependency exemptions $ ? (8) Taxable income $ ? Income tax liability $ ?