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. 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
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started