Return to the facts of Example 11. Grace’s taxable income is $43,600. Now further E X A M P L E 4 0 assume that Grace reports the following: income tax withheld, $2,300; estimated tax payments, $3,600; and a credit for dependent care expenses, $200. Grace’s net tax payable is computed as follows.
Income tax (from 2012 Tax Rate Schedule for |
|
$5,920 |
Head of Household, Appendix A, rounded) |
|
|
Less: Tax credits and prepayments— |
|
|
Credit for dependent care expenses |
$200 |
|
Income tax withheld |
2,300 |
|
Estimated tax payments |
3,600 |
(6,100) |
Net taxes payable (or refund due if negative) |
|
($180) |