Question

Required information [The following information applies to the questions displayed below.] Jeremy earned $101,400 in salary and $7,400 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 $29,200 in itemized deductions. (Use the tax rate schedules.) Assume that in addition to the original facts, Jeremy has a long-term capital gain of $10,550. What is Jeremy's tax refund or tax due luding the tax on the capital gain? (Round your intermediate calculations and final answer to the nearest whole dollar amount.) Answer is not complete. Amount $ 119,350 0 1) 2) 3) 4) 5) Description Gross income For AGI deductions Adjusted gross income Standard deduction Itemized deductions Greater of standard deduction or itemized deductions Taxable income Income tax liability Credits Tax withholding Tax (refund) $ 119,350 18,650 29,200 29,200 $ 90,150 7) 3) 2) 0) 3,700 11,000 ro

Answer 1

# Amount Description (1) Gross income $119,350 Computation $104,400 salary + $7,400 interest income + $10,550 long-term capital gains (2) For AGI deductions 0 $119,350 (1)-(2) 18,650 Head of household 29,200 29,200 (5)> (4) (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) Greater of standard deductions or itemized deductions (7) Taxable income (8) Income tax liability $90,150 $13,443 (3)-(6) ($79,600 – 53,700 22% + $6,162 +$10,550 x 15% (See tax rate schedule for head of household. Also note that the long term capital gains taxed at 15% over $53600.) (9) Credits $3,700 $11,000 (10) Tax withholding Tax (refund) $1,257 (8)-(9)-(10)