(preceding question: Jeremy earned $100,000 in salary and $6000 in interest inco
ID: 2342112 • Letter: #
Question
(preceding question: Jeremy earned $100,000 in salary and $6000 in interest income during the year. Jeremy has two qualifying dependent children who live with him. He qualifies to file as head of household and has $17,000 in itemized deductions. Neither of his dependents qualifies for the child tax credit. Use the 2017 tax rate schedules to determine Jeremy's taxes due)
Let's say that Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year. Where would I calculate that in to find out Jeremy's taxes due?
Explanation / Answer
Solution:-
Use the 2017 tax rate schedules to determine Jeremy's taxes due:-
= 100,000 + 6,000
= $106,000
= 106,000 - 0
= $106,000
3,700 * 3 (from personal exemption we taken this value )
= $11,100
= 106,000 - 17,000 - 11,100
= $77,900
=[ (77,900 - 50,800 ) * 25%] + 6,952.50 (from 2017 tax table for head household)
= 6,775 + 6952.50
= $13,727.5
Note:- I am little bit confused about second question that's why iam not answered for that .if you that one also please upload it as a another question.
THANK YOU.
Description Amount Gross income= 100,000 + 6,000
= $106,000
For AGI deductions $0 Adjusted gross income= 106,000 - 0
= $106,000
Standard deduction $13,350 (From 2017 tax table in head of house hold) Itemized deduction $17,000 Greater of standard deduction $17,000 Personal and dependency exemptions3,700 * 3 (from personal exemption we taken this value )
= $11,100
Taxable income= 106,000 - 17,000 - 11,100
= $77,900
Income tax liabilities=[ (77,900 - 50,800 ) * 25%] + 6,952.50 (from 2017 tax table for head household)
= 6,775 + 6952.50
= $13,727.5
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