Question

Jamison's gross tax liability is $11,050. Jamison had $2,740 of available credits and he had $6,900 of taxes withheld by his employer. What is Jamison's taxes due (or taxes refunded) with his tax return?

Answer 1

Jamison has a gross tax liability of $11,050. After subtracting $2,740 of available credits and $6,900 of withholdings, he will have $1,410 of taxes due with his tax return.

Step-by-step explanation:

Let's calculate Jamison's taxes due or the refund amount that he should expect. We subtract Jamison's available credits and the taxes withheld by his employer from his gross tax liability to find the answer.

Gross Tax Liability: $11,050
Available Credits: $2,740
Taxes Withheld: $6,900

First, we apply the credits:

Gross Tax Liability - Available Credits = Tax Liability after Credits
$11,050 - $2,740 = $8,310

Next, we account for the taxes that have already been withheld:

Tax Liability after Credits - Taxes Withheld = Taxes Due or Refunded
$8,310 - $6,900 = $1,410

Jamison will have $1,410 of taxes due with his tax return.