Question
Jorge Gomez is a single taxpayer. His SSN is 412-34-5670, and he lives at 5037 Circle Court, Crestview, IL 60543. He is a supervisor and
Jorge Gomez is a single taxpayer. His SSN is 412-34-5670, and he lives at 5037 Circle Court, Crestview, IL 60543. He is a supervisor and his 2020 W2 shows gross wages of $94,850 with $5,881 of social security and $1,375 of Medicare taxes withheld. He has $14,500 of federal withholding and $2,595 in state withholding. Jorge does not itemize. He had the following stock transactions for the year: Stock Shares Date Purchased Date Sold Sale Price Cost Basis 5,500 7/8/19 9/12/20 $ 15,000 $ 18,000 800 3/12/20 10/21/20 43,000 47,000 2,800 2/13/13 10/21/20 30,000 22,000 He also has interest from a savings account with Local Neighborhood Bank of $250 and a dividend from a Form 1099-DIV of $1,600 in ordinary dividends received from ABC brokerage, of which $1,350 are considered qualified dividends. Use the appropriate Tax Tables and Tax Rate Schedules.
I am trying to find the tax. Adjusted gross income is $97,700 and taxable income is $85300. First subtract 1000 for capital gain and then 1600 for dividend to get to f $82700. taxes before capital gain and dividends is 13984 and then 2600*.15 for gain and dividends for total of 14374...but this is not right. where am I going wrong? Thank you!
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