Answer:
Answer is explained below.
Explanation:
Description Amount Computation
(1)Gross Income $106,000 $100,000 Salary+ $6000 Interest income
(2)For AGI Deductions 0
(3)Adjusted Gross Income $106,000 (1) - (2)
(4)Standard Deduction $18350 Head of Household
(5)Itemized deductions $7,000
(6)Greater of standard deduction ($18350) (5)<(4)
and itemized deductions
(7)Taxable Income $87650 (3) + (6)
(8)Income Tax liability $13,790 ($87,650 -$84,200)×24%+$12,962(See tax rate schedule for head of household)
(9)Child Tax credit ($2000)
(10)Tax withholding ($11000)
Income Tax liability $790 (8) + (9) + (10)
