Question
Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremys employer withheld $11,000 of federal income taxes from Jeremys paychecks during
Jeremy earned $100,000 in salary and $6,000 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. Jeremey qualifies to file as head of household and has $23,000 in itemized deductions.
Assume that in addition to the original facts ($106,000 of ordinary gross income), Jeremy sold Amazon shares that he bought for $6,000 on 1/1/18 for $10,000 on 12/31/19. ( use 2019 tax form instruction from irs ) https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf
1. (1) What is Jeremys tax refund or tax due including the tax on the capital gain? Please show work.
2. (0.5) Copy and paste the capital tax gains table that you used to get the capital gains tax rate.
3. (0.5) Find form 8949 for 2019. Enter the details of the transaction in Part I or Part II, as appropriate. Assume that the brokerage firm reported both the basis and the sale to the IRS.
4. (1) Find Schedule D for 2019. Please complete Part I and/or Part II. You can skip Part III.
5. (1) Based on your answer to part 1, prepare t Form 1040. Please remember to attach Schedule A, in addition to the additional forms and schedules you prepared in this assignment.
6. Optional comment on what you have learned (required to earn maximum points, but does not guarantee it)
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