Question - Jeremy earned $80,000 in salary and $ 10,000 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 $10000 in itemized deductions. Neither of his dependents qualifies for the child tax credit.
a. Use the 2016 tax rate schedule to determine jeremy's taxed due.
b. Assume that in addition to the original facts, Jeremy has a long-term capital gain of $2,000. what is Jeremy's tax liability including the tax on the capital gain? Assume the original facts except that Jeremy's total income tax liability?