Can you tell me how to solve the problem? Check my work 3 Required information P

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Can you tell me how to solve the problem?

Check my work 3 Required information Part 1 of 2 The following information applies to the questions displayed below. Jeremy earned $100,700 in salary and $6,700 in interest income during the year. Jeremy's employer withheld $11,200 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 $25,700 in itemized deductions. (Use the 0.43 points 02:39:559 eBook Print a. Determine Jeremy's tax refund or taxes due

Explanation / Answer

a) Calculation of Jeremy's tax refund or taxes due for 2018 (Amounts in $)

Tax refund = Income Tax Liability - Child tax credit - Tax withholding

= $12,522 - $2,000 - $11,200 = $678

Therefore, Jeremy's tax refund is $678.

Descriptoin Amount Computation (1) Gross income 107,400 $100,700 salary+$6,700 interest income (2) For AGI deductions 0 (3) Adjusted gross income 107,400 (1) - (2) (4) Standard deduction 9,550 Head of households (5) Itemized deductions 25,700 (6) Greater of standard deduction or itemized deductions 25,700 (5) > (4) (7) Taxable income 81,700 (3) - (6) (8) Income tax liability 12,522 (13,600*10%)+[(51,800-13,600)*12%]+[(81,700-51,800)*22%] (9) Child tax credit 2,000 Maximum credit for 2018 (10) Tax withholding 11,200 Withheld by emloyer

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