Jess is single with 2 children and files taxes as head of household. His adjusted gross income is $65,700....

Question

5. Jess is single with 2 children and files taxes as head of household. His adjusted gross income is $65,700. The standard deduction is $9,300, and the amount of each personal exemption is $4,050. The tax rate for Jess' family is $1,325 plus 15% of the amount over $13,250. Jess had $375 withheld from his paycheck each month for taxes. Determine the amount of tax due to the IRS or the amount overpaid.
- Jess owes $1,475.
- Jess will receive a refund of $1,475.
- Jess owes $5,975.
- Jess will receive a refund of $5,975.

SnapAndSolve AI · Accepted Answer

To determine the tax due or refund, we need to calculate Jess's taxable income and then his tax liability.

Calculate taxable income:
- Adjusted Gross Income (AGI): $65,700
- Standard Deduction: $9,300
- Personal Exemptions: 2 children + Jess = 3 exemptions x $4,050 = $12,150
- Taxable Income = AGI - Standard Deduction - Personal Exemptions = $65,700 - $9,300 - $12,150 = $44,250
Calculate tax liability:
- Base tax = $1,325
- Amount over $13,250 = $44,250 - $13,250 = $31,000
- Tax on amount over $13,250 = 15% of $31,000 = $4,650
- Total tax liability = Base tax + Tax on amount over $13,250 = $1,325 + $4,650 = $5,975
Calculate total withholding:
- Monthly withholding = $375
- Annual withholding = $375 x 12 = $4,500
Determine tax due or refund:
- Tax liability = $5,975
- Withholding = $4,500
- Tax due = Tax liability - Withholding = $5,975 - $4,500 = $1,475

Jess owes $1,475.

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Jess is single with 2 children and files taxes as head of household. His adjusted gross income is $65,700....

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