Question

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 1

Description	Amount	Computation
(1)Gross Income	$106,000	$100,000 Salary+ $6000 Interest income
(2)For AGI Deductions	0
(3)Adjusted Gross Income	$106,000	(1) - (2)
(4)Standard Deduction	$18,350	Head of Household - for the year 2019
(5)Itemized deductions	$23,000	Itemized deduction is eliminated for the year 2019
(6)Greater of standard deduction and itemized deductions	$23,000
(7)Taxable Income	$83,000	(3) - (6)
(8)Income Tax liability	$13,790	12962+(87650-84200)*24%
(9)Child Tax credit	$2,000
(10)Tax withholding	$11,000
Income Tax liability	$790	(8) - (9) - (10)