What is jeremys tax liability including tax on capital gain

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Reference no: EM131881815

Problem

Jeremy earned $250,000 in salary and $10,000 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 $20,000 in itemized deductions. Neither of his dependents qualifies for the child tax credit. (use the tax rate schedules.). (Do not round intermediate calculations. Round "Income tax liability" to 2 decimal places.)

a. Use the 2016 tax rate schedules to determine Jeremy's taxes due.

b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $12,000. What is Jeremy's tax liability including the tax on the capital gain?

c. Assume the original facts except that Jeremy had only $3,500 in itemized deductions. What is Jeremy's total income tax liability?

Attachment:- Federal-Tax-Rate-Schedules.rar

Reference no: EM131881815

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