Question

Tax Season 2019 Please use 2019 Tax Rates

Required information [The following information applies to the questions displayed below.] Jeremy earned $101,300 in salary and $7,300 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 $28,700 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 $10,050. 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.) Description Amount (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) (7) Taxable income (8) Income tax liability (9) Child tax credit (10) Tax withholding

Answer 1

1	Gross Income	$ 118,650	101300+7300+10050
2	For AGI Deductions	$            -
3	AGI	$ 118,650
4	Standard Deduction	$   18,350
5	Itemized Deduction	$            -	Eliminated for 2019
6	Greater of Standard or Itemized	$   18,350
7	Taxable Income (1)-(6)	$ 100,300
a	Taxed at Ordinary Rates	$   14,144	12692+(90250-84200)*24%
b	Taxed at 15%	$     1,508	10050*15%
8	Income Tax Liability (a)+(b)	$   15,652
9	Child Tax Credit	$     2,000
10	Tax Withholding	$   11,000
11	Income Tax Due (8)-(9)-(10)	$     2,652