Question

Required information Problem 4-28 (LO 4-1) [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-a a. Determine Jeremy's tax refund or taxes due. 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 $ 0
This is one question with 3 parts (multi-part).

Answer 1

Answer (a)
	Description	Amount $
(1)	Gross Income	106,000
(2)	For AGI Deductions	-
(3)	Adjusted Gross Income	106,000
(4)	Standard Deduction	-
(5)	Itemized deduction	23,000
(6)		-
(7)	Taxable Income	83,000
(8)	Income Tax Liability	12,698
(9)	Child Tax Credit	3,000
(10)	Tax Withholding	11,000
	(Refund)/Due	(1,302)
Answer (b)
	Description	Amount $
(1)	Gross Income	106,000
(2)	For AGI Deductions	-
(3)	Adjusted Gross Income	106,000
(4)	Standard Deduction	-
(5)	Itemized deduction	23,000
(6)
(7)	Taxable Income	83,000
(8)	Income Tax Liability	12,698
(9)	Child Tax Credit	3,000
(10)	Tax Withholding	11,000
	(Refund)/Due (A)	(1,300)
Tax on Long term Capital Gain		Amount $
	Long term Capital Gain	4000
	Tax @ 15% (B)	600
Net (Refund)/Due (A+B)		(700)
Answer (c)
	Description	Amount
(1)	Gross Income	106,000
(2)	For AGI Deductions	-
(3)	Adjusted Gross Income	106,000
(4)	Standard Deduction	18,350
(5)	Itemized deduction	-
(6)
(7)	Taxable Income	87,650
(8)	Income Tax Liability	13,790
(9)	Child Tax Credit	3,000
(10)	Tax Withholding	11,000
	(Refund)/Due (A)	(200)