Oscar had wages = $8,000, interest income = $6,000, and $600 withholding from his wages. He...

Oscar had wages = $8,000, interest income = $6,000, and $600 withholding from his wages. He is claimed as a dependent by his mother.

Calculate Oscar’s AGI, taxable income, income tax liability, and federal tax refund

Expert Solution

Standard dedution = 8000 wages + 350 = 8,350

Particulars	Amount	Amount
Gross income:
Salary	$ 8,000
Dividends	$ 6,000
Capital loss deduction	$ -
Gross income		$ 14,000
For AGI deductions		$ -
Adjusted gross income		$ 14,000

Less:
Standard deduction	$ 8,350
Itemized deduction	$ -
Higher of the two		$ 8,350
Taxable income		$ 5,650

Income tax liability		$ 565.00
[ 0 + ( 5650 - 0 ) × 0.1 ]

Payments:
Withholding	$ 600
Child tax credit	$ -
Total payments		$ 600

Refund due		$ 35

ekkarill92 answered 2 years ago

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Oscar had wages = $8,000, interest income = $6,000, and $600 withholding from his wages. He...

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