Answered step by step
Verified Expert Solution
Question
1 Approved Answer
What is the proper calculation to solving the income tax liability for this problem? Required information [The following information applies to the questions displayed below.]
What is the proper calculation to solving the income tax liability for this problem?
Required information [The following information applies to the questions displayed below.] 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? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) (1) Answer is complete but not entirely correct. Deschpuon Amount Gross income $ 110,000 For AGI deductions 0 Adjusted gross income $ 110,000 Standard deduction 18,350 Itemized deductions 23,000 Greater of standard deduction or itemized deductions 23,000 Taxable income Taxable in $ 87,000 Income tax liability $ 14,234 X Child tax credit 2,000 Tax withholding 11,000 Tax due $ 1,234 (7) (8) (9)Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started