Question

Keith, age 16 and single, lives with his parents while attending high school. In 2020, he...

Keith, age 16 and single, lives with his parents while attending high school. In 2020, he received $6,000 of interest income and $8,500 of wages from a part-time job. What amount of Keith taxable income is taxed at his and his parents' tax rates, respectively?

$1,850 at Keith rates; $2,200 at his parents' rates.

$9,600 at Keith rates; $2,200 at his parents' rates.

$2,100 at Keith rates; $3,800 at his parents' rates.

$1,850 at Keith rates; $3,800 at his parents' rates.
Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1
Amount $
Gross Income        14,500 =6000+8500
Less: Standard Deduction          8,850 Greater of 1,100 or Earned income + 350
Taxable Income          5,650
Keith taxable income is taxed at his rates $ 1,850
Keith taxable income is taxed at his parent's rate $ 3,800 =5650-1850
Correct answer is option 4.
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
Use 2020 tax rules and rates: Andy, who is claimed as a dependent by his parents,...
Use 2020 tax rules and rates: Andy, who is claimed as a dependent by his parents, received income of $13,100 from a trust fund and $1,500 from wages. Andy had $1,200 in itemized deductions directly connected with the production of unearned income. How much of Andy's taxable income, if any, is taxed at Andy's rate? How much, if any, of Andy's income is taxed at his parents tax rate? show work
Jesus, age 14, is a dependent of his parents. During 2020, Jesus’ earned income from wages...
Jesus, age 14, is a dependent of his parents. During 2020, Jesus’ earned income from wages is $4,000 and Jesus received $3,000 of interest income. The parent's marginal rate is 24% and Jesus’ marginal rate is 10%. Jesus’ tax is (kiddie tax rules for 2020) A) $285. B) $377. C) $563. D) None of the above.
 Isaac​ Díez Peris lives in Rio de​ Janeiro, Brazil. While attending school in​ Spain, he meets...
 Isaac​ Díez Peris lives in Rio de​ Janeiro, Brazil. While attending school in​ Spain, he meets Juan Carlos Cordero from Guatemala. Over the summer​ holiday, Isaac decides to visit Juan Carlos in Guatemala City for a couple of weeks.​ Isaac's parents give him some spending​ money, 4,500 Brazilian real​ (BRL). Isaac wants to exchange his Brazilian real for Guatemalan quetzals​ (GTQ). He collects the following​ rates: Spot rate on the​ GTQ/EUR: GTQ 10.24 ​= EUR 1.00 Spot rate on the​...
Stuart Planter is a full-time teacher, and he lives in the country with his family. Stuart...
Stuart Planter is a full-time teacher, and he lives in the country with his family. Stuart farms on a part-time basis. Stuart earned $85,000 in 20x6 at his full-time teaching job. During 20x6 he also incurred farm revenues totaling $8,000 and farm expenses totaling $5,000. He has also provided the following additional information: • He has rental properties which has the following information: o Rental property located at 5830 Queen Mary Road in Montreal:  5 condos  Rent per...
Could someone assist me with these taxes problems: 1. Aidan is unmarried. His mother, for whom...
Could someone assist me with these taxes problems: 1. Aidan is unmarried. His mother, for whom he can claim an exemption, lived in an apartment by herself. She died on September 2. The cost of the upkeep of her apartment for the year until her death was $6,000. Aidan and his brother both paid support and their mother had no income. Aidan would qualify to file as head of household if he paid what amount of his mother’s support? a)...
Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives...
Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2017. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2019, he had the following receipts: Salary $ 80,000 Interest income—    Money market account at Omni Bank $300    Savings account at Boone State Bank 1,100    City of Springfield general purpose bonds 3,000 4,400 Inheritance from Daniel 60,000 Life insurance proceeds 200,000 Amount from sale of...
This problem is for the 2018 tax year. Roberta Santos, age 41, is single and lives...
This problem is for the 2018 tax year. Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta,...
Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her...
Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6789. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason’s Social Security number is 111-11-1112, and June’s is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund. Roberta, an advertising executive, earned a salary from ABC...
Tom, an ornithologist, had been debating for years whether to venture out on his own and...
Tom, an ornithologist, had been debating for years whether to venture out on his own and operate his own business. He had developed a lot of solid relationships with clients and he believed that many of them would follow him if he were to leave his current employer. As part of a New Year’s resolution, Tom decided he would finally do it. Tom put his business plan together and, on January 1 of this year, Tom opened the doors of...
Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant...
Beth R. Jordan lives at 2322 Skyview Road, Mesa, AZ 85201. She is a tax accountant with Mesa Manufacturing Company, 1203 Western Avenue, Mesa, AZ 85201 (employer identification number 11-1111111). She also writes computer software programs for tax practitioners and has a part-time tax practice. Beth is single and has no dependents. Beth was born on July 4, 1972, and her Social Security number is 123-45-6789. She wants to contribute $3 to the Presidential Election Campaign Fund. The following information...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT