Federal Tax Accounting

2020 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: I: at not over: $ 9,875 $ 40,125 $ 85 ,525 $163 ,300 $207 ,350 $518 ,400 The tax is: 10% of taxable income $987.50 plus 12% of the excess over $9,875 4,617.50 plus 22% of the excess over $40,125 14,605.50 plus 24% of the excess over $85,525 33,271.50 plus 32% of the excess over $163,300 47,367.50 plus 35 % of the excess over $207,350 156,235 plus 37% of the excess over $518,400 $ 9,875 $ 40,125 $ 85,525 $163,300 $207,350 $518,400 Schedule Y-l-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: I ut not over: The tax is: $ 19,750 0% of taxable income $ 80,250 1,975 plus 12% of the excess over $19,750 $171,050 9,235 plus 22% of the excess over $80,250 $326,600 29,211 plus 24% of the excess over $171,050 $414,700 66,543 plus 32% of the excess over $326,600 $622,050 94,735 plus 35% of the excess over $414,700 167,307.50 plus 37% of the excess over $622,050 $ 19,750 $ 80,250 $171,050 $326,600 $414,700 $622,050 Schedule Z-Head of Household If taxable income is over: I ut not over: 33 14,100 $ 53,700 $ 85,500 $163,300 $207 ,350 $5 18 ,400 The tax is: 0% of taxable income 1,410 plus 12% of the excess over $14,100 6,162 plus 22% of the excess over $53,700 13,158 plus 24% of the excess over $85,500 31,830 plus 32% of the excess over $163 ,300 45,926 plus 35 % of the excess over $207,350 154,793.50 plus 37% of the excess over $518,400 $ 14,100 $ 53,700 $ 85 ,500 $163 ,300 $207,350 $518,400 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 $ 9,875 10% of taxable income $ 9,875 $ 40,125 $987.50 plus 12% of the excess over $9,875 $ 40,125 $ 85,525 $4,617.50 plus 22% of the excess over $40,125 $ 85,525 $163,300 $14,605.50 plus 24% of the excess over $85,525 $163,300 $207,350 $33,271.50 plus 32% of the excess over $163,300 $207,350 $311,025 $47,367.50 plus 35% of the excess over $207,350 $311,025 $83,653.75 plus 37% of the excess over $311,025Req uired information [The following information applies to the questions displayed below] Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions. (Use the tax rate schedules.) 3. Determine Jeremy's tax refund or taxes due. (1) Gross income (2) ForAGl deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions 23,000 (7) Taxable income (8) Income tax liability (9) Child tax credit Tax withholding b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy's tax refund or tax due including the tax on the capital gain? (1 ) Gross income $ 110,000 (2) For AGI deductions Adjusted gross income (4) Standard deduction (5) Itemized deductions $ 110,000 23,000 (7) Taxable income $ 110,000 (8) Income tax liability (9) Child tax credit Tax withholding 11,000 1:. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremy's tax refund or tax due? (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) (7) Taxable income (8) Income tax liability (9) Child tax credit (10) Tax withholding