Question

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.) Problem 4-28 Part-b 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.)

Answer 1

Answer: Pagento b. Assume that in addition to the original facta, Jeremy has a long term Capital gain of $4,060. What is jeremy's tax rufund or tax due including the tax on the Capital gain. Description I Amount Computation D Grosa Income 110000 (100000 + 6000+4000) = 110000 12 AGN Deductions , o 3) Adjusted Grrods Income 110 000 110000-0 = 110.000 (4) Standard De duction isooo Head of Household 23.000 5) Itemişe ' Deduction 6) Greader of standard deduction or Itemized deduc. tim 23000

Pageno & personal and dependency exemptions Repealed in 2018 (8) Taxable income | 87000 9) Income tax liability 110000 -23000 384.000 12698 +(83000-82500) *24% + (UOCO X 154) = 12698+ 500x247. + 4000 X1SY. 13418 = 12698 + 120+600 = 13018 2000 D) Child Tare Cordit 11) Tax witheld 11,000 (12) Taxeş due 13418-2000-11,000 418 = 418