Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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. a. Determine Jeremys tax refund or taxes due. Description Amount Computation (1) Gross income 106,000 $100,000 salary $ 6,000 interest income (2) For AGI deductions 0 (3) Adjusted gross income (1) (2) (4) Standard deduction (5) Itemized deductions (6) Greater of standard deduction or itemized deductions (5) > (4) (7) Taxable income (3) + (6) (8) Income tax liability 9. Child Tax Credit 10. Tax withholding Can you please show me how you are getting the head of household. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremys tax refund or tax due including the tax on the capital gain? Also please explain how you got Income tax liability

Thanks

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cornerstones of managerial accounting

Authors: Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

5th edition

978-1305302327, 130530232X, 978-1133943983

More Books

Students also viewed these Accounting questions

Question

Explain how to control impulses.

Answered: 1 week ago