In: Finance
Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy’s employer withheld $11,000 of federal income taxes from Jeremy’s paychecks during the year. Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head of household and has $23,000 in itemized deductions.
Determine Jeremy’s tax refund or taxes due.
Answer :- | |||||
Taxable income Slab | Rate | ||||
0-9700 | 10% | ||||
9701- 39475 | 12% | ||||
39476-84200 | 22% | ||||
Salary | 100000 | ||||
Interest Income | 6000 | ||||
Withhold Tax by Employer | 11000 | ||||
Deductions | 23000 | ||||
Total Income | 106000 | ||||
Deduction | 23000 | ||||
Net Income | 83000 | ||||
Total tax Liability | |||||
Taxable income Slab | Taxable Income | Tax Liability | |||
0-9700 | 9700 | 970 | |||
9701- 39475 | 29775 | 3,573 | |||
39476-84200 | 43525 | 9,576 | |||
Total | 83000 | 14,119 |