Question

Please answer parts A, B, and C. this is income

tax.

Required information Problem 4-28 (LO 4-1) (The following information applies to the questions displayed below] Jeremy earned $100,200 in salary and $6.200 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 $23,200 in itemized deductions. Use the tax rate schedules) Problem 4-28 Part-a a. Determine Jeremy's tax refund or taxes due Description Amount $ 106.400 (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions $ 106,400 23 200 200 Tags (7) Taxable income (8) Income tax lability (9) Child tax credit (10) Tax withholding

Answer 1

(a) STATEMENT SHOWING JERMEY TAXDUE/ REFUND as per head of household slab

Salary	$100200	a
Interest	$6200	b
Gross income	$106400	(a+b)
AGI deduction	0	no deduction is there
Adjusted gross Income	$106400
Less Itemized deduction	-$23200	As standard deduction for the Head of household Is $18350 which is less than $ 23200 so As per federal tax laws only one deduction can be taken which ever is higher
Taxable Income	$83200	( AGI- itemized deduction)
TAX on base Income	$6065	income tax on income upto $52850 as per slab
TAx on Excess income	$6677	($83200-$52850 )*22%
Total FEderal TAx	$12742	(6065+6677)
less Child tax credit	- $2000	One child tax credit deduction =$2000
Less with Holding TAx	- $11000
Refund	$258	(12742-2000-11000)

(b) STATEMENT SHOWING JERMEY TAXDUE/ REFUND as per head of household slab

Salary	$100200	a
Interest	$6200	b
Gross income	$106400	(a+b)
AGI deduction	0	no deduction is there
Adjusted gross Income	$106400
Less Itemized deduction	-$23200	As standard deduction for the Head of household Is $18350 which is less than $ 23200 so As per federal tax laws only one deduction can be taken which ever is higher
Taxable Income before Long term Gain	$83200	( AGI- itemized deduction)
TAX on base Income	$6065	income tax on income upto $52850 as per slab
TAx on Excess income	$6677	($83200-$52850 )*22%
TAxable income before Long term gain	$12742	(6065+6677)
LOng term Gain	$ 4550	Long term gain are taxed @ 15% flat rate
Tax on ltg	$683	4550*15%=682.5
total Income tax	$13425	12742+683=13425
less Child tax credit	- $2000	One child tax credit deduction =$2000
Less with Holding TAx	- $11000
Income tax liability	$ 425	(13425-2000-11000)

(c) STATEMENT SHOWING JERMEY TAXDUE/ REFUND as per head of household slab

Salary	$100200	a
Interest	$6200	b
Gross income	$106400	(a+b)
AGI deduction	0	no deduction is there
Adjusted gross Income	$106400
Less itemized deduction	- $7000	As standard deduction for the Head of household Is $18350 which is greater than $ 7000 so As per federal tax laws only one deduction is allowed and jermey has opted for itemized
Taxable Income before Long term Gain	$99400	( AGI- standard deduction)
TAX on base Income	$12962	computed income tax on income upto $84200 as per slab
TAx on Excess income	$3648	($99400-$84200 )*24%
Total income tax	$16610	(3648+12962)
less Child tax credit	- $2000	One child tax credit deduction =$2000
Less with Holding TAx	- $11000
Income tax liability	$3610	(16610-2000-11000)

It is assumed that jermey has opted for itemized deduction in the given case