Question
Jeremy earned $270,000 in salary and $8,000 in interest income during the year. Jeremy has two qualifying dependent children who live with him. He qualifies
Jeremy earned $270,000 in salary and $8,000 in interest income during the year. Jeremy has two qualifying dependent children who live with him. He qualifies to file as head of household and has $21,000 in itemized deductions. Neither of his dependents qualifies for the child tax credit. (use the tax rate schedules.). (Do not round intermediate calculations. Round "Income tax liability" to 2 decimal places.) MUST USE 2017 TAX RATE !!!!!!!!!!!!!!!!!! 1) What is Jeremys income tax liability? 2) Assume that in addition to the original facts, Jeremy has a long-term capital gain of $13,000. What is Jeremys tax liability including the tax on the capital gain? 3) Assume the original facts except that Jeremy had only $8,000in itemized deductions. What is Jeremys total income tax liability?
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