Larry Johnson, 45 and single, has the following income and deductions in 2019. Using the tax rate schedules rather than the tax tables, compute Larry’s tax owed or refund due for 2019.

Assume dividends are not qualified.

In addition, Larry’s car (value = $15,000, cost = $20,000) was stolen during the year, and the insurance reimbursement was only $7,000. He also had $2,000 of travel expenses related to his job that were not reimbursed and $3,000 of federal income tax withheld from his salary.
He elects to treat his dividends as net investment income, so they are not subject to the special long-term capital gains tax rates.

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Salary Interest income Dividends Medical Expenses Property Taxes on Personal Residence Interest on Home Mortgage State and Local Income Taxes State and Local Sales Taxes Investment Interest Expense $50,000 3,200 800 6,150 6,300 7,600 5,800 2,000 5,000