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Jeremy earned $100,000 in salary and $6,000 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 $17,000 in itemized deductions. Neither of his dependents qualifies for the child tax credit.
a) Use the 2015 tax rate schedules to determine Jeremy's taxes due.
b) Assume that in addition to the original facts, Jeremy has a long-term capi- tal gain of $4,000. What is Jeremy's tax liability including the tax on the capital gain?
c) Assume the original facts except that Jeremy had only $7,000 in itemized deductions. What is Jeremy's total income tax liability?
Prepare a Flexible Budget Gator Divers is a company that provides diving services such as underwater ship repairs to clients in the Tampa Bay area.
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