Question
Jeremy (unmarried) earned $101,200 in salary and $7,200 in interest income during the year. Jeremy's employer withheld $10,000 of federal income taxes from Jeremy's paychecks
Jeremy (unmarried) earned $101,200 in salary and $7,200 in interest income during the year. Jeremy's employer withheld $10,000 of federal income taxes from Jeremy's 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 $24,200 in itemized deductions, including $2,000 of charitable contributions to his church. (Use the tax rate schedules.)
Required:
1-Determine Jeremy's tax refund or taxes due.
2-Assume that in addition to the original facts, Jeremy has a long-term capital gain of $9,550. What is Jeremy's tax refund or tax due including the tax on the capital gain?
3-Assume the original facts except that Jeremy has only $8,000 in itemized deductions. Assume the charitable contribution deduction for non-itemizers applies to 2022. What is Jeremy's tax refund or tax due?
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