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 $2,000 of charitable contributions to his church. (Use the tax rate schedules.)... What is typed thus far is correct but furthermore I am stumped. Schedule Z-Head of HouseholdIf taxable income is over:But not over:The tax is:$ 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 a. Determine Jeremy's tax refund or taxes due.DescriptionAmount(1) Gross income$106,000(2) For AGI deductions(3) Adjusted gross income$106,000(4) Standard deduction(5) Itemized deductions23,000(6) Greater of standard deduction or itemized deductions23,000(7) Taxable income$83,000(8) Income tax liability(9) Child tax credit(10) Tax withholding10,000Tax (refund)

Child tax credit refers to the benefit provided to the guardian of the children in order to decline…

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SWFT Individual Income Taxes

43rd Edition

ISBN:9780357391365

Author:YOUNG

Publisher:YOUNG

Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions

Section: Chapter Questions

Problem 23CE

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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.)... What is typed thus far is correct but furthermore I am stumped.

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

a. Determine Jeremy's tax refund or taxes due.
Description
Amount
(1) Gross income
$
106,000
(2) For AGI deductions
(3) Adjusted gross income
$
106,000
(4) Standard deduction
(5) Itemized deductions
23,000
(6) Greater of standard deduction or itemized deductions
23,000
(7) Taxable income
$
83,000
(8) Income tax liability
(9) Child tax credit
(10) Tax withholding
10,000
Tax (refund)

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