Question

QUESTION 1 Jeremy earned $90,000 in salary and $6,000 in interest income in the current year, Jeremy's employer withheld $11,200 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremey qualifies to file as head of household and has $23,000 in itemized deductions. What is Jeremy's tax refund or taxes due? QUESTION 2 Jeremy earned $90,000 in salary, $6,000 in interest income and a long-term capital gain of $4,000 during the current year. Jeremy's employer withheld $11,200 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. What is Jeremy's tax refund or taxes due? QUESTION 3 Jeremy earned $90,000 in salary and 56,000 in interest income during the year. Jeremy's employer withheld $11,200 of federal income taxes from Jeremy's paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremey qualifies to file as head of household and has $7.000 in itemized deductions. What is Jeremy's tax refund or faxes due?

Answer 1

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Solution: As per Tax year 2019 limit, answer will be different for different year: Answer are highlighted in yellow: Description | Amount Gross Income (90000+6000) 96000 For AGI Deduction Adjusted Gross Income 96000 Standard Deduction (per 2019 rule) $ 18,350 Itemized Deduction $ 23,000 Greater of Standard or Itemized deduction $ 23,000 Taxable Income (96000-23000) $ 73,000 Income tax liablity (6065)+(73000-52850)*22% $ 10,498 Child tax credit (per 2019 rule) $ 2,000 Tax Withholding $ 11,200 Tax Refund (Amount sign can be negative) $ 2,702 Less: Less: Less: 9 10 As per 2019, Child tax credit rule, Maximum credit per child is $2000. will be phaseout by $50 per $1000 or proportion Increase in Modified income of $200000, in case of single and Head of household. Therefore, $ 2,000

Amount 100000 Description Gross Income (90000+6000)+4000 For AGI Deduction Adjusted Gross Income Standard Deduction (per 2019 rule) Itemized Deduction Greater of Standard or Itemized deduction Taxable income (100000-23000 Income tax liablity (6065)+(73000-52850)*22% + (4000*15%) Child tax credit (per 2019 rule) Tax Withholding Tax refund (Amount sign can be negative) Less: $ $ $ $ $ $ $ $ 100000 18,350 23,000 23,000 77,000 11,098 2,000 11,200 -2,102 Less: Less: 10 Amount 96000 Description Gross Income (90000+6000) For AGI Deduction Adjusted Gross Income Standard Deduction (per 2019 rule) Itemized Deduction Greater of Standard or Itemized deduction Taxable Income (96000-18350) Income tax liablity (6065)+(77650-52850)*22% Child tax credit (per 2019 rule) Tax Withholding Tax refund (Amount sign can be negative) $ $ $ $ $ $ $ $ 96000 18,350 7,000 18,350 77,650 11,521 2,000 11,000 -1,479