Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $10,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions, including $2,000 of charitable contributions to his church. (Use the tax rate schedules.)c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremy’s tax refund or tax due? Schedule Z-Head of HouseholdIf taxable income is over:But not over:The tax is:$ 14,200$ 54,200$ 86,350$ 164,900$ 209,400$ 523,600$10% of taxable income$ 14,200$1.420 plus 12% of the excess over $14,200$ 54,200$ 86,350$ 164,900$ 209,400$ 523,600$6,220 plus 22% of the excess over $54,200$13,293 plus 24% of the excess over $86,350$32,145 plus 32% of the excess over $164,900$46,385 plus 35% of the excess over $209,400$156,355 plus 37% of the excess over $523,600 c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is Jeremy's tax refund or tax due?DescriptionAmount(1) Gross income$106,000(2) For AGI deductions(3) Adjusted gross income$106,000(4) Standard deduction(5) Itemized deductions(6) Greater of standard deduction or itemized deductions(7) Charitable contribution(8) Taxable income$106,000(9) Income tax liability(10) Child tax credit3,000(11) Tax withholding10,000Tax due

Tax is the amount which an individual or business is liable to pay the government for business…

Answered: Jeremy earned $100,000 in salary and…

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter18: Accounting For Income Taxes

Section: Chapter Questions

Problem 2RE: Refer to RE18-1. Assume that Parkers taxable income for Year 1 is 150,000. Prepare the journal entry...

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Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $10,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child (age 14) who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions, including $2,000 of charitable contributions to his church. (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?

Schedule Z-Head of Household
If taxable income is over:But not over:
The tax is:
$ 14,200
$ 54,200
$ 86,350
$ 164,900
$ 209,400
$ 523,600
$
10% of taxable income
$ 14,200
$1.420 plus 12% of the excess over $14,200
$ 54,200
$ 86,350
$ 164,900
$ 209,400
$ 523,600
$6,220 plus 22% of the excess over $54,200
$13,293 plus 24% of the excess over $86,350
$32,145 plus 32% of the excess over $164,900
$46,385 plus 35% of the excess over $209,400
$156,355 plus 37% of the excess over $523,600

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