Jeremy2, 9 points max, due Jan 19 

 

For all non-MC work, the default grade for a good submission is B=83%= 7.5 points.  To get the max points, the work needs to be aesthetic, professionally presented, and I must learn something new or interesting from reading the optional comment.

 

Jeremy earned $100,000 in salary and $6,000 in interest income during the year. Jeremy's employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year.  Jeremy has one qualifying 10-year-old dependent child who lives with him. Jeremey qualifies to file as head of household and has $23,000 in itemized deductions. 

 

Assume that in addition to the original facts ($106,000 of ordinary gross income), Jeremy on 12/31/2021 sold $10,000 of Amazon shares that he bought for $6,000 on 1/1/18. You may use the book chapter 4, PowerPoints, or the IRS instructions to form 1040.  https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf

 

1. What is Jeremy's tax refund or tax due including the tax on the capital gain?  Please show tables and work.

 

 

2. If you have not done so above, please copy and paste the capital tax gains table that you used to get the capital gains tax rate.

 

3. Prepare form 8949.   Enter the details of the transaction in Part I or Part II, as appropriate.  Assume that the brokerage firm reported both the basis and the sale to the IRS.  Attach or paste below.

 

4. Prepare Schedule D.  Please complete Part I and/or Part II.  You can skip Part III.  Attach or paste below.

 

5.  Prepare Form 1040.  Please remember to attach Schedule A, in addition to the other forms and schedules you prepared in this assignment.

 

6. Optional comment on what you have learned

Answer rating: 100% (QA)

To calculate Jeremys tax refund or tax due including the tax on the capital gain we first need to determine his total taxable income and then apply th... View the full answer