Question
Jeremy earned $102,000 in salary and $8,000 in interest income during the year. Jeremys employer withheld $10,000 of federal income taxes from Jeremys paychecks during
Jeremy earned $102,000 in salary and $8,000 in interest income during the year. Jeremys employer withheld $10,000 of federal income taxes from Jeremys paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $32,200 in itemized deductions, including $2,000 of charitable contributions to his church. (Use the tax rate schedules.)
a. Determine Jeremys tax refund or taxes due.
b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $13,550. What is Jeremys tax refund or tax due including the tax on the capital gain? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremys tax refund or tax due?
image below is for all 3 questions
Amount $ 110,000 $ Description (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) Greater of standard deduction or itemized deductions (7) Taxable income (8) Income tax liability (9) Child tax credit (10) Tax withholding Tax (refund) 110,000 18,650 32,200 77,800 32,200 $ $ 11,464 2,000 11,000 2,464 $Step by Step Solution
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