Question

In 2019, Simon, age 12, has interest income of $900 and dividend income of $4,000. He...

In 2019, Simon, age 12, has interest income of $900 and dividend income of $4,000. He has no investment expenses. Determine Simon's net unearned income and total tax liability.

Click here to access the 2019 tax rate schedule and 2019 Estate and Trust Tax Rate Schedule. If required, round the tax liability the nearest dollar.

Net unearned income is $.
Simon's total tax is $.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Kiddie tax is applicable as Simon has Unearned Income of more than $2,200. Therefore, the amount above it will be taxed.

Total Unearned income in the given case = $900+$4,000= $4,900.

Standard Deduction = $2,200

Net unearned Income = Total unearned income - Standard deduction

= $4,900 - $2,200

= $2,700.

Total Tax payable by Simon

10% of taxable income up to $2,550 = 10% of $2,550 =$255

24% of the taxable income over $2,550 = ( $2,700 - $2,550 ) * 24% =$36

Tax payable by Simon =$255 + $36 = $291.

Total tax payable by Simon (after rounding off) = $290.

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
In 2019, Simon, age 12, has interest income of $900 and dividend income of $4,000. He...
In 2019, Simon, age 12, has interest income of $900 and dividend income of $4,000. He has no investment expenses. Determine Simon's net unearned income and total tax liability. Click here to access the 2019 tax rate schedule and 2019 Estate and Trust Tax Rate Schedule. If required, round the tax liability the nearest dollar. Net unearned income is $. Simon's total tax is
Computation of Kiddie Tax In 2020, Simon, age 12, has interest income of $900 and dividend...
Computation of Kiddie Tax In 2020, Simon, age 12, has interest income of $900 and dividend income of $4,000. He has no investment expenses. Determine Simon's net unearned income and total tax liability. Click here to access the 2020 tax rate schedule. If required, round the tax liability the nearest dollar. Net unearned income is $. Simon's total tax is $.
Exercise 9-6 (Algorithmic) (LO. 6) In 2019, Simon, age 12, has interest income of $6,780 and...
Exercise 9-6 (Algorithmic) (LO. 6) In 2019, Simon, age 12, has interest income of $6,780 and no earned income. He has no investment expenses. Click here to access the 2019 tax rate schedule and 2019 Estate and Trust Tax Rate Schedule. If required, round the tax liability to the nearest dollar. Income Tax Rates—Estates and Trusts Taxable Income Over— $0 2,600 9,300 12,750 Taxable Income Over— $0 2,550 9,150 12,500 Tax Year 2019 The Tax Is: But not Over— Over—...
In 2018, Simon, age 12, has interest income of $8,960 and no earned income. He has...
In 2018, Simon, age 12, has interest income of $8,960 and no earned income. He has no investment expenses. If required, round the tax liability to the nearest dollar. 1.Net unearned income is $_____ 2. Simon's total tax is______
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each...
Compute the 2019 Federal income tax liability and the marginal and effective tax rates in each of the following independent cases. Click here to access the 2019 tax rate schedule. If required, round the tax liability the nearest dollar. When required, round the average rates to four decimal places before converting to a percentage (i.e. .67073 would be rounded to .6707 and entered as 67.07%). a. Chandler is single and reports taxable income of $149,000. Tax liability: $ -- Marginal...
Halal has the following for 2019: $103,000 salary, $5,000 dividend income, $4,000 interest income on the...
Halal has the following for 2019: $103,000 salary, $5,000 dividend income, $4,000 interest income on the city of San Antonio bonds, a gain of $11,000 on a stock sale, $3,500 traditional IRA contribution, and a $3,000 operating loss on a small sole proprietorship that he owns. What is Hala’s AGI Shireen, age 58 and single, has no dependents and an AGI of $50,000 and these  expenses: unreimbursed medical expenses of $1,200,charitable contribution of $5,000, real estate taxes  of $3,500, and residence mortgage...
The entity reports the following transactions for the 2019 tax year. The trustee accumulates all accounting...
The entity reports the following transactions for the 2019 tax year. The trustee accumulates all accounting income for the year. Operating income from a business$835,000 Dividend income, all from U.S. corporations 50,100 Interest income, City of San Antonio bonds 6,680,000 Fiduciary fees, deductible portion(25,050) Net rental losses, passive activity(167,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar. Compute the Federal income...
The entity reports the following transactions for the 2019 tax year. The trustee accumulates all accounting...
The entity reports the following transactions for the 2019 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $835,000 Dividend income, all from U.S. corporations 50,100 Interest income, City of San Antonio bonds 6,680,000 Fiduciary fees, deductible portion (25,050) Net rental losses, passive activity (167,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar. Compute...
Problem 6-8 Unearned Income of Minor Children and Certain Students (LO 6.4) Brian and Kim have...
Problem 6-8 Unearned Income of Minor Children and Certain Students (LO 6.4) Brian and Kim have a 12-year-old child, Stan. For 2019, Brian and Kim have taxable income of $52,000, and Stan has interest income of $4,500. No election is made to include Stan's income on Brian and Kim's return. Click here to access the income tax rate schedules and the trust and estate tax rate schedules. a. For purposes of the tax on a child's unearned income, calculate Stan's...
Prepare a multiple-step income statement for Simon Corporation for 2019 using the data provided , including...
Prepare a multiple-step income statement for Simon Corporation for 2019 using the data provided , including EPS disclosures assuming 500,000 shares of common stock were outstanding for 2019. The income tax rate is 25%. Sales revenue : $30,000,000 General and administrative expenses : 5,400,000 Deferred revenue: 50,000 Interest expense: 18,000 Selling expenses : 800,000 Interest revenue: 16,000 Cost of goods sold: 9,000,000 Dividend revenue: 8,000 Additional Information: The company's fiscal year end is December 31st. Income tax expense has not...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT