Question

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21) Katia, age 14, is a dependent of her parents. Her only source of income in 2018 is $7,500 of interest income on bonds given her by her grandparents. Katia's marginal rate is 10%, and her parent's marginal rate is 28%. Katia's tax for 2018 is (kiddie tax rules for 2018)

A) $357.

B) $395.

C) $964.

D) $1,044.

22) Santino, age 14, is a dependent of his parents. During 2018, Santino's earned income from wages is $3,500 and Santino received $4,000 of interest income. The parent's marginal rate is 28% and Santino's marginal rate is 10%. Santino's tax is (kiddie tax rules for 2018)

A) $285.

B) $365.

C) $483.

D) None of the above.

24) Chen, a single taxpayer, had the following income and deductions during 2018:

Salary                                                                     $55,000

Interest on bank account                                         750

Tax-exempt interest                                                  500

Deduction for AGI                                                 5,500

Itemized deductions                                          15,000

Taxes withheld                                                       5,500

Calculate Chen's tax liability due or refund.

1. $1,010.50 tax liability.
2. $1,010.50 refund.
3. $705.50 tax liability.

          D)     $705.50 refund.

Answer 1