Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremys employer withheld $11,200 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 $23,000 in itemized deductions.

b. 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?

Description Amount (1) Gross income (2) For AGI deductions (3) Adjusted gross income Standard deduction (5) Itemized deductions (6) (7) Taxable income (8) Income tax liability (9) Child tax credit (10) Tax withholding $ 0 2018 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: $ 0 $ 9,525 $ 9,525 $ 38,700 $ 38,700 $ 82,500 $ 82,500 $157,500 $157,500 $200,000 $200,000 $500,000 $500,000 The tax is: 10% of taxable income $952.50 plus 12% of the excess over 59,525 $4,453.50 plus 22% of the excess over $38,700 $14,089.50 plus 24% of the excess over $82,500 $32,089.50 plus 32% of the excess over $157,500 $45,689.50 plus 35% of the excess over $200,000 $150,689.50 plus 37% of the excess over $500,000 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) If taxable income is over: But not over: The tax is: $ 0. $ 19,050 10% of taxable income $ 19,050 $ 77,400 $1,905 plus 12% of the excess over $19,050 $ 77,400 $165.000 $8.907 plus 22% of the excess over $77,400 $165,000 $315,000 $28,179 plus 24% of the excess over $165,000 $315,000 $400,000 $64,179 plus 32% of the excess over S315,000 $400,000 $600,000 $91,379 plus 35% of the excess over $400,000 $600,000 S161,379 plus 37% of the excess over $600,000 Schedule 7-Head of Household - Search the web and your PC o e a S - ENG ENG 23/2020 B Schedule Z-Head of Household If taxable income is over: But not over: The tax is: $ 0 $ 13,600 10% of taxable income $ 13,600 $ 51,800 $1,360 plus 12% of the excess over $13,600 $ 51,800 $ 82,500 $5,944 plus 22% of the excess over $51,800 $ 82,500 $157,500 $12,698 plus 24% of the excess over $82,500 $157,500 $200,000 $30,698 plus 32% of the excess over $157,500 $200.000 $500,000 S44.298 plus 35% of the excess over $200,000 $500,000 $149,298 plus 37% of the excess over $500,000 Schedule Y-2-Married Filing Separately If taxable income is over: But not over: The tax is: $ 0 S 9.525 10% of taxable income $ 9,525 $ 38,700 $952.50 plus 12% of the excess over $9,525 $ 38,700 $ 82,500 $4,453.50 plus 22% of the excess over $38,700 $ 82,500 $157,500 $14,089.50 plus 24% of the excess over $82,500 $157,500 $200,000 $32,089.50 plus 32% of the excess over $157,500 $200,000 $300,000 $45,689.50 plus 35% of the excess over $200,000, $300,000 S80,689.50 plus 37% of the excess over $300,000 9:48 PM 11 . Search the web and your PC OPL e a so ^ ENG 2/3/20202