Question
4. Jeremy earned $100,400 in salary and $6,400 in interest income during the year. Jeremys employer withheld $11,000 of federal income taxes from Jeremys paychecks
4. Jeremy earned $100,400 in salary and $6,400 in interest income during the year. Jeremys employer withheld $11,000 of federal income taxes from Jeremys paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $24,200 in itemized deductions. (Use the tax rate schedules.)
c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremys tax refund or tax due?
Description | Amount | |
1 | Gross Income | 106800 |
2 | For AGI Deductions | 0 |
3 | Adjusted Gross Income | 106800 |
4 | Standard deduction | 18650 |
5 | Itemized Deduction | 7000 |
6 | Greater of standard deduction or itemized deductions | |
7 | Taxable Income | 106800 |
8 | Income Tax Liability | |
9 | Child Tax Credit | 2000 |
10 | Tax Withholding | 11000 |
Tax Due |
Need help finding 6) and 8) as well as Tax Due. Please explain calculations.
Below is the tax rate schedule:
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 14,100 | 10% of taxable income |
$ 14,100 | $ 53,700 | $1,410 plus 12% of the excess over $14,100 |
$ 53,700 | $ 85,500 | $6,162 plus 22% of the excess over $53,700 |
$ 85,500 | $163,300 | $13,158 plus 24% of the excess over $85,500 |
$163,300 | $207,350 | $31,830 plus 32% of the excess over $163,300 |
$207,350 | $518,400 | $45,926 plus 35% of the excess over $207,350 |
$518,400 | $154,793.50 plus 37% of the excess over $518,400 |
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