Jeremy earned $101,800 in salary and $7,800 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. Jeremy qualifies to file as head of household and has $31,200 in itemized deductions. (Use the tax rate schedules.)

a. Determine Jeremys tax refund or taxes due.

Gross income(salary 101,800 + interest income 7,800) = 109,600

For AGI deductions = 0

Adjusted gross income = 109,600

Standard deduction = 18,350 head of household

Itemized deductions = 31,200

Greater of standard deduction or itemized deductions - itemized >standard 31,200

Taxable income - adjusted gross income(109,600) greater standard deduction(31,200)= 78,400

Income tax liability= 78,400

Child tax credit 2000 * 1 = 2000

Tax withholding = 11,000

Tax due = Tax due/(tax refund)(8-9-10) 78,400-2000-11,000