Jorge Gomez is a single taxpayer. His SSN is 412-34-5670, and he lives at 5037 Circle...

Jorge Gomez is a single taxpayer. His SSN is 412-34-5670, and he lives at 5037 Circle Court, Crestview, IL 60543.
Wages from W2 $94850
Taxable Int $250
Ordinary DIV $1600
Capital Gain $1000

We are taking the standard deduction. I'm coming up with a taxable income of $85,500. But I'm having a hard time calculating the Tax for line 12a.
I believe the capital gain of $1000 should be taxed at 15% I'm not sure how to make this all fit together.

Expert Solution

Particulars	Amount	Amount
Gross income:
Salary	$ 94,850
Interest	$ 250
Dividends	$ 1,600
Capital gains	$ 1,000
Gross income		$ 97,700
For AGI deductions		$ -
Adjusted gross income		$ 97,700

Less:
Standard deduction	$ 12,200
Itemized deduction	$ -
Higher of the two		$ 12,200
Taxable income		$ 85,500

Income tax liability		$ 14,604.50
[ 14382.5 + ( 84500 - 84200 ) × 0.24 ]+1000*15%

Tax is 14604.50 (including 15% tax on 1000 capital gain)

please rate.

ekkarill92 answered 3 years ago

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