FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Transcribed Image Text:Jeremy earned $101,000 in salary and $7,000 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 $27.200 in itemized deductions, including $2,000 of
charitable contributions to his church. (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 $8,550. 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.)
Description
Amount
(1) Gross income
(2) For AGI deductions
(3) Adjusted gross income
(4) Standard deduction
(5) Itemized deductions
(7) Taxable income
(8) Income tax liability
(9) Child tax credit
(10) Tax withholding
Transcribed Image Text:2021 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over:
The tax is:
$ 0
$ 9,950
10% of taxable income.
$ 9,950
$ 40,525
$ 40,525
$ 86,375
$164,925
$ 86,375
$164,925
$ 209,425
$ 523,600
$995 plus 12% of the excess over $9,950
$4,664 plus 22% of the excess over $40,525
$14,751 plus 24% of the excess over $86,375
$33,603 plus 32% of the excess over $164,925
$47,843 plus 35% of the excess over $209,425
$157,804.25 plus 37% of the excess over $523,600
$ 209,425
$ 523,600
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over:
The tax is:
$ 0
$ 19,900
10% of taxable income
$ 19,900
$ 81,050
$ 172,750
$ 329,850
$ 418,850
$ 628,300
S 81,050
$ 172,750
$329,850
$418,850
$ 628,300
$1.990 plus 12% of the excess over $19,900
$9,328 plus 22% of the excess over $81,050
$29,502 plus 24% of the excess over $172,750
$67,206 plus 32% of the excess over $329,850
$95,686 plus 35% of the excess over $418,850
$168.993.50 plus 37% of the excess over $628,300
Schedule Z-Head of Household
If taxable income is over: But not over:
The tax is:
$ 0
$ 14,200
10% of taxable income
$ 14,200
$ 54,200
$ 54,200
$ 86,350
$164,900
$ 86,350
$164,900
$ 209,400
$ 523,600
$1,420 plus 12% of the excess over $14,200
$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
$ 209,400
$ 523,600
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over:
The tax is:
$ 0
$ 9,950
10% of taxable income
$ 9,950
$ 40,525
$ 40,525
$ 86,375
$ 86,375
$164,925
$ 209,425
$314,150
$995 plus 12% of the excess over $9,950
$4,664 plus 22% of the excess over $40,52
$14,751 plus 24% of the excess over $86,375
$33,603 plus 32% of the excess over $164.925
$47,843 plus 35% of the excess over $209,425
$84,496.75 plus 37% of the excess over $314,150
$ 164,925
$ 209,425
$314,150
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