Question

CH Required information [The following information applies to the questions displayed below) Jeremy earned $101,600 in salary and $7,600 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 $30,200 in itemized deductions. (Use the tax rate schedules.) o. Determine Jeremy's tax refund or taxes due Description Amount $ 0 (1) Gross income (2) For AGI deductions (3) Adjusted gross income (4) Standard deduction (5) Itemized deductions (6) (7) Taxable income (8) Income tax ability $ 0

Answer 1

2020 Tax Brackets

Rate	For Single Individuals, Taxable Income Over	For Heads of Households, Taxable Income Over
10%	$0	$0
12%	$9,875	$14,100
22%	$40,125	$53,700
24%	$85,525	$85,500
32%	$163,300	$163,300
35%	$207,350	$207,350
37%	$518,400	$518,400

a) Calculation of Jeremy's Taxes refund or taxes due

Description	Amount
Gross Income ($101,600 +$7,600)	$109,200
For AGI Deductions	$0
Adjusted Gross Income	$109,200
Standard Deductions (As per 2020 Rule)	$18,650
Itemized Deductions	$30,200
Greater of Standard or itemized Deductions	($30,200)
Taxable Income	$79,000
Income Tax Liability ($14,100 * 10%)+($53,700 - $14100)*12%+ ($79,000 - $53,700)*22%)	$11,728
Child Tax Credit (As per 2020 Rule)	($2,000)
Tax Witholding	($11,000)
Tax (refund)	($1,272)

b) Calculation of Jeremy's Taxes refund or taxes due when Jeremy has a long term capital gain of $11,550

Description	Amount
Gross Income ($101,600 +$7,600 + $11,550)	$120,750
For AGI Deductions	$0
Adjusted Gross Income	$120,750
Standard Deductions (As per 2020 Rule)	$18,650
Itemized Deductions	$30,200
Greater of Standard or itemized Deductions	($30,200)
Taxable Income	$90,550
Income Tax Liability ($14,100 * 10%)+($53,700 - $14100)*12%+ ($85,500 - $53,700)*22% +($90,550 - $85,500)*24%)	$14,370
Child Tax Credit (As per 2020 Rule)	($2,000)
Tax Witholding	($11,000)
Tax (refund)	$1,370

  c) Calculation of Jeremy's Taxes refund or taxes due when Jeremy's itemized deductions are $7,000

Description	Amount
Gross Income ($101,600 +$7,600)	$109,200
For AGI Deductions	$0
Adjusted Gross Income	$109,200
Standard Deductions (As per 2020 Rule)	$18,650
Itemized Deductions	$7,000
Greater of Standard or itemized Deductions	($18,650)
Taxable Income	$90,550
Income Tax Liability ($14,100 * 10%)+($53,700 - $14100)*12%+ ($85,500 - $53,700)*22% +($90,550 - $85,500)*24%)	$14,370
Child Tax Credit (As per 2020 Rule)	($2,000)
Tax Witholding	($11,000)
Tax (refund)	$1,370