income taxes
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Cc.28.

Transcribed Image Text:es
Jeremy (unmarried) earned $100,100 in salary and $6,100 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 $23,100 in itemized deductions, including $2,000 of charitable contributions to
his church. (Use the tax rate schedules.)
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 $4,050. 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.
c. Assume the original facts except that Jeremy has only $8,000 in itemized deductions. Assume the charitable contribution
deduction for non-itemizers applies to 2022. What is Jeremy's tax refund or tax due?
Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,050. 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.
Description
(1) Gross income
(2) For AGI deductions
(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
Amount
$ 110,250
Reton to qu
$ 110,250
19,400
23,100
23,100
$ 87,150
$
13,898
2,000
10,000
399
Expert Solution

This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps

Recommended textbooks for you


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,


Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,

Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,

Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON

Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education

Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education