7000 Qualifying child care expense 3700 Federal income tax withheld 7000

7000 qualifying child care expense 3700 federal

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$7,000Qualifying child care expense$3,700Federal income tax withheld$7,000Compute Kelly’s taxable income and her net tax due or refund expected for 2011.Income /ExpenseNet TaxDue /RefundADJ Gross IncomeSalary$60,000$60,000Cash dividends$3,000$3,000Interest income on City of NY bonds$5,000$0Interest income on U.S. Treasury bills$4,000$4,000Net rental income$3,500$3,500Alimony received from ex-husband$2,500$2,500Child support received from ex-husband$3,500$0
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Filing Head of Household $6,668 [$6330 + 25% x ($47,600-$46,250)] Dividend Income $450 (15% rate, with 25% tax bracket) Gross Income Tax: $7,118 Tax Credits Qualifying child care expense -$600 (Up to 20% of $3000 limit over $43,000 AGI) Child Tax Credit -$1,000 Tax Pre-Payments Federal income tax withheld -$7,000 Net Refund: -$1,483
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