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. Joe qualifies to file as head
of household and has $23,000 in itemized deductions.
Assume that in addition to the original facts ($106,000 of
ordinary gross income), Joe sold Amazon shares that he bought for
$6,000 on 1/1/18 for $10,000 on 12/31/19. You...