Question

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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.) c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremy's tax refund or tax due? Description Amount $ 106,000 01 $ 106,000 7,000 (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 $ 106,000 2,000 11,000

Answer 1

c. )		Description	Amount $
	1	Gross Income	106,000	=100000+6000
	2	For AGI deductions	0
	3	Adjusted Gross Income	106,000	=100000-0
	4	Standard deductions	18,650
	5	Itemized deduction	7,000
	6	Greater of Standard deduction or Itemized deductions	18,650
	7	Taxable Income	87,350	=106,000 - 18,650
	8	Income Tax liability	13,602	=13158+((87350-85500)*24%)
	9	Child tax credit	2,000
	10	Tax withholding	11,000
		Tax Due	602	(13,602 - 2,000 - 11,000 )