HW 4 EXAM QUESTIONS WITH 100%
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Jeremy earned $100,800 in salary and $6,800 in interest income during the year. Jeremy's
employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year.
Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head
of household and has $26,200 in itemized deductions. (Use the tax rate schedules.)
c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is
Jeremy's tax refund or tax due? - ANS chart fill in
Determine Jeremy's tax refund or taxes due (assume Jeremy did not receive the recovery
rebate in advance of filing his tax return).
GI 107600
For AGI 0
SD 18,650
ID 26,200
Greater? 26,200
Tax. Income 81,400
Income tax lia. 12,256
credits (2,000)
Tax withholdings (11,000)
tax refund/due? refund 744
C. 986
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Emily, who is single, has been offered a position as a city landscape consultant. The position
pays $145,400 in cash wages. Assume Emily has no dependents. Emily deducts the standard
deduction instead of itemized deductions, and she is not eligible for the qualified business
income deduction. (Use the tax rate schedules.)
a. What is the amount of Emily's after-tax compensation (ignore payroll taxes) - ANS GI
145,400
For AGI 0
AGI 145,000
SD 12,400
Taxable income 133,000
tax liability 26,000
after tax compensation 119,400 ( 145400-26,000)
Emily, who is single, has been offered a position as a city landscape consultant. The position
pays $145,400 in cash wages. Assume Emily has no dependents. Emily deducts the standard
deduction instead of itemized deductions, and she is not eligible for the qualified business
income deduction. (Use the tax rate schedules.)
b-1. Suppose Emily receives a competing job offer of $137,000 in cash compensation and
nontaxable (excluded) benefits worth $8,400. What is the amount of Emily's after-tax
compensation for the competing offer?
Which job should she take if taxes are the only concern? - ANS GI $137,000
For AGI
AGI 137,000
SD 12,400
Taxable Income 124,600
Tax liability 23,984
total after tax compensation 121,416 (145,400-23984)
competing
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
CORRECT ANSWERS | LATEST
VERSION 2025/2026.
Jeremy earned $100,800 in salary and $6,800 in interest income during the year. Jeremy's
employer withheld $11,000 of federal income taxes from Jeremy's paychecks during the year.
Jeremy has one qualifying dependent child who lives with him. Jeremy qualifies to file as head
of household and has $26,200 in itemized deductions. (Use the tax rate schedules.)
c. Assume the original facts except that Jeremy has only $7,000 in itemized deductions. What is
Jeremy's tax refund or tax due? - ANS chart fill in
Determine Jeremy's tax refund or taxes due (assume Jeremy did not receive the recovery
rebate in advance of filing his tax return).
GI 107600
For AGI 0
SD 18,650
ID 26,200
Greater? 26,200
Tax. Income 81,400
Income tax lia. 12,256
credits (2,000)
Tax withholdings (11,000)
tax refund/due? refund 744
C. 986
1 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
, Emily, who is single, has been offered a position as a city landscape consultant. The position
pays $145,400 in cash wages. Assume Emily has no dependents. Emily deducts the standard
deduction instead of itemized deductions, and she is not eligible for the qualified business
income deduction. (Use the tax rate schedules.)
a. What is the amount of Emily's after-tax compensation (ignore payroll taxes) - ANS GI
145,400
For AGI 0
AGI 145,000
SD 12,400
Taxable income 133,000
tax liability 26,000
after tax compensation 119,400 ( 145400-26,000)
Emily, who is single, has been offered a position as a city landscape consultant. The position
pays $145,400 in cash wages. Assume Emily has no dependents. Emily deducts the standard
deduction instead of itemized deductions, and she is not eligible for the qualified business
income deduction. (Use the tax rate schedules.)
b-1. Suppose Emily receives a competing job offer of $137,000 in cash compensation and
nontaxable (excluded) benefits worth $8,400. What is the amount of Emily's after-tax
compensation for the competing offer?
Which job should she take if taxes are the only concern? - ANS GI $137,000
For AGI
AGI 137,000
SD 12,400
Taxable Income 124,600
Tax liability 23,984
total after tax compensation 121,416 (145,400-23984)
competing
2 | Page @COPYRIGHT 2025/2026 ALLRIGHTS RESERVED
