Question - 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. (Use the tax rate schedules.) (Round your answers to nearest whole dollar.)
a. Use the 2014 tax rate schedules to determine Jeremy's taxes due.
b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $4,000. What is Jeremy's tax liability including the tax on the capital gain?