Question

! Required information Problem 4-29 (LO 4-1) (Algo) [The following information applies to the questions displayed below.] Jeremy earned $102,000 in salary and $8,000 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 $32,200 in itemized deductions. (Use the tax rate schedules.) Problem 4-29 Part-b (Algo) b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $13,550. What is Jeremy's tax refund or tax due including the tax on the capital gain? (Round your intermediate calculations and final answer to the nearest whole dollar amount.)
Standard deduction is 18650

Use 2020 tax schedule

Answer 1

a)

Description	Amount
1	Gross Income	110,000
2	For AGI purposes	-
3	Adjusted Gross Income	110,000
4	Standard deduction	18,650
5	Itemized deduction	32,200
6	Greater of standard deduction or itemized deduction	32,200
7	Taxable income	77,800
8	Income tax liability	12,906
9	Child tax credit	2,000
10	Tax withholding	11,000
11	Tax Due	(94)

b)

Description	Amount
1	Gross Income	123,550
2	For AGI purposes	-
3	Adjusted Gross Income	123,550
4	Standard deduction	18,650
5	Itemized deduction	32,200
6	Greater of standard deduction or itemized deduction	32,200
7	Taxable income	91,350
8	Income tax liability	14,939
9	Child tax credit	2,000
10	Tax withholding	11,000
11	Tax Due	1,939