Melvin is single, age 58. He eamed the following income
Melvin is single, age 58. He eamed the following income this year:
Salary
Qualified dividend income eamed on stock he owns
Interest income eamed on State of North Dakota bonds he owns
Interest income eamed on GM bonds he owns
Short-term capital gain reported on sale of corporate bonds he owned
Long-term capital gain reported on sale of stock he owned
$ 105,000
1,200
900
500
4,000
7,500
Melvin has itemized deductions of $17,200. He had $12,850 in federal income tax withheld from his salary.
His daughter, Remi, died a few years ago and since then, Remi's son, Aaron, age 15, has been living full-
time with Melvin. Melvin provides all of Aaron's support. Aaron earned $1,800 this year working in a part-
time job, which he put in his savings account to pay for his future college tuition. Because he supports
Aaron, Melvin qualifies for the Head of Household filing status.
Required: Calculate Melvin's 2021 (1) adjusted gross income; (2) taxable income; (3) income tax liability;
(4) net tax liability; and (5) tax due (refund).
2021 adjusted gross income is
2021 taxable income is
2021 income tax liability is
2021 net tax liability is
2021 tax due (refund) is
