Question

1 0.9 points Required information (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.) a. Determine Jeremy's tax refund or taxes due. Answer is complete but not entirely correct. (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) Description Gross income For AGI deductions Adjusted gross income Standard deduction Itemized deductions Greater of standard deduction or itemized deductions Taxable income Income tax liability Child tax credit Tax withholding Tax (refund) Amount $ 105,000 0 $ 105,000 18,350 23,000 (23,000) $ 83,000 S 12.698 (2.000) (11.000) (302)

Answer 1

Here in the pre filled answer only 3 items is wrong

The standard deduction for head of household is $18650

Now the Tax liability will be calculated as

Jeremy will fall under schedule Z head of household and in the slab of $53700-$85500

and tax liability is calculated as $6162 +(22% of (Taxable income-$53700))

$6162 +(22% of ($83000-53700))

= $6162+ (0.22* $29300)

= $6162+$6446 = $12608

Now the Tax refund will be $12608-$2000-$11000 = $392

Now the revised statement is

Description	Amount
Gross Income	$106000
For AGI Deduction	$0
Adjusted Gross Income	$106000
Standard Deduction	$18650
Itemised deduction	$23000
Greater of standard deduction or itemised deduction	($23000)
Taxable Income	$83000
Income tax liability	$12608
Child Tax credit	$2000
Tax Withholding	$11000
Tax (refund)	$392

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