Jeremy (unmarried) earned $107,500 in salary and $6,400 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 $31,420 in itemized deductions. (Use the tax rate schedules, Tax rates for Net Capital Gains and Qualified Dividends.) Required: a. Determine Jeremy's tax refund or taxes due. b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,180. What is Jeremy's tax refund or tax due including the tax on the capital gain? c. Assume the original facts except that Jeremy has only $7,750 in itemized deductions. What is Jeremy's tax refund or tax due?
Jeremy (unmarried) earned $107,500 in salary and $6,400 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 $31,420 in itemized deductions. (Use the tax rate schedules, Tax rates for Net Capital Gains and Qualified Dividends.) Required: a. Determine Jeremy's tax refund or taxes due. b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,180. What is Jeremy's tax refund or tax due including the tax on the capital gain? c. Assume the original facts except that Jeremy has only $7,750 in itemized deductions. What is Jeremy's tax refund or tax due?
Chapter3: Computing The Tax
Section: Chapter Questions
Problem 38P
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Question
Transcribed Image Text:Jeremy (unmarried) earned $107,500 in salary and $6,400 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 $31,420 in itemized deductions. (Use the tax rate schedules, Tax rates for Net
Capital Gains and Qualified Dividends.)
Required:
a. Determine Jeremy's tax refund or taxes due.
b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,180. What is Jeremy's tax refund or tax due
including the tax on the capital gain?
c. Assume the original facts except that Jeremy has only $7,750 in itemized deductions. What is Jeremy's tax refund or tax due?
Complete this question by entering your answers in the tabs below.
Required A
X Answer is complete but not entirely correct.
Required B Required C
Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,180. What is Jeremy's tax refund or
tax due including the tax on the capital gain?
Note: Round your intermediate calculations and final answer to the nearest whole dollar amount.
(1) Gross income
(2) For AGI deductions
Description
(3) Adjusted gross income
(4) Standard deduction
(5) Itemized deductions
(6) Greater of standard deduction or itemized deductions
(7) Taxable income
(8) Income tax liability
(9) Child tax credit
(10) Tax withholding
Tax due
S
Amount
$ 118,080
0✓
$ 118,080
20,800✔
31,420 ✔
31,420
$
86,660
$ 13,833 X
$
2,000✔✓
10,000✔
1,833 x
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