Question

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 1

A. FOLLOWING ARE THE TAX CALCULATION OF JEREMY'S-

PARTICULARS	AMOUNT
SALARY	$100000
INTEREST INCOME	$6000
TOTAL INCOME	$106000
LESS- DEDUCTION	$18350
NET INCOME	$87650
TAX ON NET INCOME	$13934
TAX ALREADY PAID	$11000
TAX DUES	$2934

NOTE

1 ACCORDING TO THE FEDERAL INCOME TAX ACT, THE MAXIMUM ITEMIZED DEDUCTION ALLOWED TO HEAD OF HOUSEHOLD SHOULD BE 18350.

2. CALCULATION OF TAX AS PER FEDERAL TAX BRACKETS 2018-19 FOR HEAD OF HOSE HOLD

$0-$13600 10% 1360

$13601-$51800 12% 4584

$51801-$82500 22% 6754

$82500-$87650 24% 1236

THEREFORE TOTAL TAX IS 13934.