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Please show work. Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from
Please show work.
Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions. (Use the tax rate schedules.) a. Determine Jeremy's tax refund or taxes due. Answer is complete and correct. Description Amount Gross income (1) (2) (3) (4) (5) For AGI deductions Adjusted gross income Standard deduction Itemized deductions Greater of standard deduction or itemized deductions $ 106,000 0 $ 106,000 18,650 23,000 23,000 s 83,000 $ 12,608 (6) (7) Taxable income (8) Income tax liability 30 2,000 (9) (10) Child tax credit Tax withholding Tax (refund) 11,000 (392) >$ Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions. (Use the tax rate schedules.) b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy's tax refund or tax due including the tax on the capital gain? Answer is complete and correct. Description Gross income (1) (2) (3) For AGI deductions Adjusted gross income Standard deduction Itemized deductions (4) (5) (6) (7) Amount $ 110,000 0 $ 110,000 18,650 23,000 (23,000) $ 87,000 $ 13,208 (2,000) (11,000) >$ 208 Greater of standard deduction or itemized deductions > Taxable income (8) (9) (10) Income tax liability Child tax credit Tax withholding Tax due Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions. (Use the tax rate schedules.) c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremy's tax refund or tax due? Answer is complete but not entirely correct. Amount 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 due $ 106,000 0 $ 106,000 18,000 X 7,000 (18,000) $ 88,000 $ 14,018 X (2,000) (11,000) >$ 1,018 XStep by Step Solution
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