Question

Required information [The following information applies to the questions displayed below.) Jeremy earned $100,900 in salary and $6,900 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 $26,700 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 $8,050. 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) ltemized deductions (6) (7) Taxable income (8) Income tax liability (9) Child tax credit (10) Tax withholding

Answer 1

Part A

	Description	Amount
1	Gross income (100900+6900)	107800
2	For AGI deductions	0
3	Adjusted gross income	107800
4	Standard deduction	18350
5	Itemized deductions	26700
6	Greater of standard deductions or itemized deductions	26700
7	Taxable income	81100
8	Income tax liability	$12280 (6065+(22%*(81100-52850)))
9	Child tax credit	2000
10	Tax withholding	11000
	Taxes refund	$(720)

Part B

	Description	Amount
1	Gross income (100900+6900+8050)	115850
2	For AGI deductions	0
3	Adjusted gross income	115850
4	Standard deduction	18350
5	Itemized deductions	26700
6	Greater of standard deductions or itemized deductions	26700
7	Taxable income	89150
8	Income tax liability	$13488 (6065+(22%*(81100-52850)))+(8050*15%)
9	Child tax credit	2000
10	Tax withholding	11000
	Taxes refund	$488