Orrill is single and has custody of his 8-year-old son Jack.Orrill has gross income of $46,000,deductions for adjusted gross income of $2,200 and itemized deductions of $6,000.What is his tax liability for 2017?

Question

Quizplus · Accepted Answer

Orrill's adjusted gross income is $43,800 ($46,000 - $2,200). The standard deduction for a head of household in 2017 is $9,350, which is more beneficial than itemizing. The taxable income is $34,450 ($43,800 - $9,350). Using the 2017 tax brackets for head of household, the tax liability is calculated as follows: 10% on the first $13,350 ($1,335) and 15% on the remaining $21,100 ($3,165), totaling $4,500. Subtract the child tax credit of $1,000 for Jack, resulting in a tax liability of $3,500. However, the closest option is $3,285, which suggests a possible error in the provided options or calculations.

Orrill Is Single and Has Custody of His 8-Year-Old Son