Question

Required information [The following information applies to the questions displayed below.) Jeremy earned $101,500 in salary and $7,500 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 $29,700 in itemized deductions. (Use the tax rate schedules.) a. Determine Jeremy's tax refund or taxes due. Amount $ 109,000 $ 109,000 Description (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) Greater of standard deduction or itemized deductions (7) Taxable income (8) Income tax liability (9) Child tax credit (10) Tax withholding Tax refund 29,700 29,700 79,300 $ 11,000

Answer 1

Case 1:

	Description	Amount
1	Gross income	1,09,000
2	For AGI Deducion	-
3	AGI	1,09,000
4	Standard Deduction	(18,350)
5	Itemized Deduction	(29,700)
6	Greater of Standard Deduction or Itemized Deduction	(29,700)
7	Taxable Income	79,300
8	Income Tax Liability	11,884
9	Child Tax credit	(2,000)
10	Tax withholding	(11,000)
	Tax Refund	(1,116)

Case 2:

	Description	Amount
1	Gross income	1,20,050
2	For AGI Deducion	-
3	AGI	1,20,050
4	Standard Deduction	(18,350)
5	Itemized Deduction	(29,700)
6	Greater of Standard Deduction or Itemized Deduction	(29,700)
7	Taxable Income	79,300
8	Income Tax Liability	13,542
9	Child Tax credit	(2,000)
10	Tax withholding	(11,000)
	Tax Due	542