Question

ament 2 (Chapter 4) Sayed Help Save & Exit 7 Required information [The following information applies to the questions displayed below.) Jeremy earned $100,600 in salary and $6,600 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 $25,200 in itemized deductions. (Use the tax rate schedules.) of 3 . b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $6,550. 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.) ok Description Amount (1) Gross income (2) For AGI deductions (3) Adjusted gross income $ (4) Standard deduction (5) Itemized deductions (6) (7) (8) (9) Greater of standard deduction or itemized deductions (10) Lesser of standard deduction or itemized deductions BER Prev 17 18 of 18 Next >

Answer 1

Jeremy has a tax due of $ 652.5 below:

Description	Amount	Computation
(1) Gross income	$113,750	$100,600 salary + $ 6,600 Interest income + $6,550 long term capital gain
(2) For AGI deductions	0
(3) Adjusted gross income	$113,750	(1) - (2)
(4) Standard deduction	18,350	Head of Household
(5) Itemized deductions	25,200
(6) Greater of standard deduction or itemized deductions	(25,200)	(5) > (4)
(7) Taxable income	$88,550
(8) Income tax liability	$13,652.5	[($82,000 - $53,701) x 22% + $6,444] + ($6,550 x 15%)
(9) Child tax credit	(2,000)
(10) Tax withholding	(11,000)
Taxes due	$ 652.5	(8) + (9) + (10)

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