Question

1. Joe earned $100,000 in salary and $6,000 in interest income during the year. Joe’s employer withheld $11,000 of federal income taxes from Joe’s paychecks during the year. Joe has one qualifying dependent child who lives with him. Jeremey qualifies to file as head of household. Assume the original facts except that Joe had only $7,000 in itemized deductions. You may use the IRS instructions to form 1040.

a. Determine Joe’s tax refund or taxes due. You must show work.

b. Copy and paste the applicable table showing tax rates used.

Answer 1

a

Particulars	Amount	Amount
Gross income:
Salary	$        100,000
Interest	$            6,000
Gross income		$        106,000
For AGI deductions		$                   -
Adjusted gross income		$        106,000
Less:
Standard deduction	$          18,350
Itemized deduction	$            7,000
Higher of the two		$          18,350
Taxable income		$          87,650
Income tax liability		$    13,790.00
[ 12962 + ( 87650 - 84200 ) × 0.24 ]
Payments:
Withholding	$          11,000
Child tax credit	$            2,000
Total payments		$          13,000
Tax payable		$                790

Net tax due is 790

b

Tax rate schedule used: (head of household section)

please rate.