Question

Joan is 15 and a dependent of her parents. If she has $4,900 income from her trust fund this year, how much income tax will she pay for 2018 if her parents have $150,000 of taxable income?

Answer #1

Begining from 2018 to 2025, the Tax Cuts and Jobs Act changes
the rates for the Kiddie Tax. During these years, children's
unearned income will not be taxed at their parents income tax
rates. Instead,

all net unearned income over a threshold amount--$2,100 for
2018--is taxed using the brackets and rates for trusts and estates.
These are shown in the following chart :

Therefore,

Taxable income for Joan = $4,900 - $2,100 =$2,800

0 - $2,550 at 10% = $2,550 * 10% = $255

$2,550 - $2,800 at 24% = $250 * 24% = $60

So, total income tax for Joan = $255 + $60 = $315

Taylor, age 18, is a dependent of her parents. For 2018, she
records the following income: $4,400 wages from a summer job,
$1,885 interest from a money market account, and $2,100 interest
from City of Boston bonds. If required, round your answers to the
nearest dollar. If an amount is zero, enter "0".
a. Taylor's standard deduction for 2018 is $ .
Taylor's taxable income for 2018 is $ .
b. Compute Taylor's "net unearned income" for the purpose of...

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

Taylor is 13 and is a dependent on her parents taxes.
in 2018 she earned 3400 in wages, 1560 interest from a money market
account, and 2100 interest on a bond. what is her standadr
deduction, taxa let income, net unearned income and tax
liability

In 2020, Sheryl is claimed as a dependent on her parents' tax
return. Her parents report taxable income of $500,000 (married
filing jointly). Sheryl did not provide more than half her own
support. What is Sheryl's tax liability for the year in each of the
following alternative circumstances? Use Tax Rate Schedule,
Dividends and Capital Gains Tax Rates for reference. (Leave no
answer blank. Enter zero if applicable.)
d. She received $7,000 of qualified dividend income. This is her
only...

Cindy is age 18, is claimed as a dependent on her parents joint
tax return. During the year, cindy earned $3,000 babysitting and
$2500 in interest from a bank savings account. compute cindys net
unearned income and taxable income in 2018.

In 2018, Sheryl is claimed as a dependent on her parents' tax
return. Sheryl did not provide more than half her own support. What
is Sheryl's tax liability for the year in each of the following
alternative circumstances?
A)She received $7,000 of interest income from corporate bonds
she received several years ago. This is her only source of income.
She is 16 years old at year-end.
B)She received $7,000 of interest income from corporate bonds
she received several years ago....

Joan filed her individual income tax return 5 months after it
was due. She did not request an extension of time for filing. Along
with her return, Joan remitted a check for $350, which was the
balance of the taxes she owed with her return.
Disregarding interest, calculate the total penalties that Joan
will be required to pay, assuming the failure to file was not
fraudulent.

Charles and Joan Thompson file a joint return. In 2018, they had
taxable income of $94,480 and paid tax of $12,665. Charles is an
advertising executive, and Joan is a college professor. During the
fall 2019 semester, Joan is planning to take a leave of absence
without pay. The Thompsons expect their taxable income to drop to
$76,000 in 2019. They expect their 2019 tax liability will be
$8,735, which will be the approximate amount of their withholding.
Joan anticipates...

In 2018, Sheryl is claimed as a dependent on her parents' tax
return. Sheryl did not provide more than half her own support.
What is Sheryl's tax liability for the year in each of the
following alternative circumstances? Use Tax Rate Schedule,
Dividends and Capital Gains Tax Rates, Estates and Trusts for
reference.
a. She received $6,200 from a part-time job.
This was her only source of income. She is 16 years old at
year-end. What is her tax liability?...

Petunia's (filing status: single and she is her only dependent)
tax calculations are as follows assuming a 2018 tax year). 2018
standard deduction amount is $6,500 and the exemption amount for
2018 is $4150. Petunia is single and will claim herself as an
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property taxes of $3,900, and made $4,950 in charitable
contributions during the year. All these are itemized deductions.
Calculate her (progressive) income tax liability:
Wages, salaries,...

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