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Jeremy (unmarried) earned $104,000 in salary and $6,250 in interest income during the year. Jeremy's employer withheld $10,000 of federal income taxes from Jeremy's
Jeremy (unmarried) earned $104,000 in salary and $6,250 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 $28,180 in itemized deductions. (Use the tax rate schedules, Tax rates for Net Capital Gains and Qualified Dividends.) Required: a. Determine Jeremy's tax refund or taxes due. b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,140. What is Jeremy's tax refund or tax due including the tax on the capital gain? c. Assume the original facts except that Jeremy has only $7,400 in itemized deductions. What is Jeremy's tax refund or tax due? Complete this question by entering your answers in the tabs below. Required A Required B Required C Determine Jeremy's tax refund or taxes due. Note: Round your intermediate calculations and final answer to the nearest whole dollar amount. Description (1) Gross income (2) For AGI deductions (3) Adjusted gross income Amount $ 110,250 0 $ 110,250 (4) Standard deduction (5) Itemized deductions 28,180 (6) Greater of standard deduction or itemized deductions 28,180 (7) Taxable income $ 82,070 (8) Income tax liability (9) Child tax credit (10) Tax withholding
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