Question

Tiffany is unmarried and has a 15-year-old qualifying child. Tiffany has determined her tax liability to be $3,525, and her employer has withheld $1,500 of federal taxes from her paycheck. Tiffany is allowed to claim a $2,000 child tax credit for her qualifying child What amount of taxes will Tiffany owe (or what amount will she receive as a refund) when she files her tax return?

Description Amount
(1) Income tax liability
(2) Other taxes
(3) Total tax
(4) Credits
(5) Prepayments Tax due with return

Answer 1

The amount of taxes will Tiffany owe when she files her tax return is $25

Step-by-step explanation:

Description Amount

1 Income Tax Liability $ 3,525

2 Other Taxes -

3 Total Taxes $ 3,525

4 Credits (Child Tax) $ 2,000

5 Prepayments (Employer Withheld) $ 1,500

Tax Due with Returns $ 25

Note: Employer withheld $ 1,500 and he will deposit the same to government so this amount is eligible as prepayment