Leo earned $120,000 in salary and $2,000 in interest income from corporate bonds during 2022. Leo’s employer withheld $2,500 of federal income taxes from Leo’s paychecks during the year. Leo was a single dad and lived with her 10-year-old girl Amy for the entire year. Leo’s wife passed away in 2019.

Assuming Leo has an $18,800 itemized deduction. Leo can also claim a $2,000 child tax credit for Amy. If Leo qualifies as Head of Household, what is Leo’s final tax due?

 

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If taxable income is over: $ 0 $10,275 $41,775 $89,075 $170,050 $215,950 $539,900 If taxable income is over: $ 0 $20,550 $83,550 $178,150 $340,100 $431,900 Schedule X-Single But not $647,850 over: $10,275 $41,775 $89,075 $215,950 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) But not $170,050 $15,213.5 plus 24% of the excess over $89,075 over: $ 20,550 $83,550 2022 Tax Rate Schedules $178,150 The tax is: $539,900 $49,335.50 plus 35% of the excess over $215,950 Individuals $431,900 10% of taxable income $1,027.5 plus 12% of the excess over $10,275 $647,850 $4,807.5 plus 22% of the excess over $41,775 $34,647.5 plus 32% of the excess over $170,050 $162,718 plus 37% of the excess over $539,900 The tax is: 10% of taxable income $2,055 plus 12% of the excess over $20,550 $340,100 $30,427 plus 24% of the excess over $178,150 $9,615 plus 22% of the excess over $83,550 $69,295 plus 32% of the excess over $340,100 $98,671 plus 35% of the excess over $431,900 $174,253.5 plus 37% of the excess over $647,850 If taxable income is over: $ 0 $14,650 $55,900 $89,050 $170,050 $215,950 $539,900 If taxable income is over: $ 0 $10,275 $41,775 $89,075 Schedule Z-Head of Household But not $170,050 $215,950 $323,925 over: $14,650 $55.900 $89,050 $215,950 $539,900 Schedule Y-2-Married Filing Separately But not $170,050 $13,708 plus 24% of the excess over $89,050 over: $10,275 $41,775 The tax is: $89,075 10% of taxable income $1,465 plus 12% of the excess over $14,650 $6,415 plus 22% of the excess over $55,900 $215,950 $33,148 plus 32% of the excess over $170,050 $47,836 plus 35% of the excess over $215,950 $161,218.5 plus 37% of the excess over $539.900 The tax is: 10% of taxable income $1,027.5 plus 12% of the excess over $10,275 $4,807.5 plus 22% of the excess over $41,775 $170,050 $15,213.5 plus 24% of the excess over $89,075 $34,647.5 plus 32% of the excess over $170,050 $323,925 $49,335.5 plus 35% of the excess over $215,950 $87,126.75 plus 37% of the excess over $323,925 Page C-2 If taxable income is over: $ 0 $10,275 $41,775 $89,075 $170,050 $215,950 $539,900 If taxable income is over: $ 0 $20,550 $83,550 $178,150 $340,100 $431,900 Schedule X-Single But not $647,850 over: $10,275 $41,775 $89,075 $215,950 Schedule Y-1-Married Filing Jointly or Qualifying Widow(er) But not $170,050 $15,213.5 plus 24% of the excess over $89,075 over: $ 20,550 $83,550 2022 Tax Rate Schedules $178,150 The tax is: $539,900 $49,335.50 plus 35% of the excess over $215,950 Individuals $431,900 10% of taxable income $1,027.5 plus 12% of the excess over $10,275 $647,850 $4,807.5 plus 22% of the excess over $41,775 $34,647.5 plus 32% of the excess over $170,050 $162,718 plus 37% of the excess over $539,900 The tax is: 10% of taxable income $2,055 plus 12% of the excess over $20,550 $340,100 $30,427 plus 24% of the excess over $178,150 $9,615 plus 22% of the excess over $83,550 $69,295 plus 32% of the excess over $340,100 $98,671 plus 35% of the excess over $431,900 $174,253.5 plus 37% of the excess over $647,850 If taxable income is over: $ 0 $14,650 $55,900 $89,050 $170,050 $215,950 $539,900 If taxable income is over: $ 0 $10,275 $41,775 $89,075 Schedule Z-Head of Household But not $170,050 $215,950 $323,925 over: $14,650 $55.900 $89,050 $215,950 $539,900 Schedule Y-2-Married Filing Separately But not $170,050 $13,708 plus 24% of the excess over $89,050 over: $10,275 $41,775 The tax is: $89,075 10% of taxable income $1,465 plus 12% of the excess over $14,650 $6,415 plus 22% of the excess over $55,900 $215,950 $33,148 plus 32% of the excess over $170,050 $47,836 plus 35% of the excess over $215,950 $161,218.5 plus 37% of the excess over $539.900 The tax is: 10% of taxable income $1,027.5 plus 12% of the excess over $10,275 $4,807.5 plus 22% of the excess over $41,775 $170,050 $15,213.5 plus 24% of the excess over $89,075 $34,647.5 plus 32% of the excess over $170,050 $323,925 $49,335.5 plus 35% of the excess over $215,950 $87,126.75 plus 37% of the excess over $323,925 Page C-2

Answer rating: 100% (QA)

Based on the information you sent me Leos taxable income is 120000 sal... View the full answer