Question

n 2018, Carson is claimed as a dependent on his parent's tax return. Carson's parents provided most of his support.

Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Round your final answer to the nearest whole dollar amount.)

Question: Carson is 23 years old at year-end. He is a full-time student and earned $14,825 from his summer internship and part-time job. He also received $6,110 of qualified dividend income.

What is Carson's Tax Liability??

Answer 1

Solution:
Computation of Carson tax liabilities for 2018
Particular	Amount($)
Earned income	14,825.00
Less: Standard deduction lower of
(a) $12,000 or
(b) $14,825 + $350	12,000.00
Net income earned income	2,825.00
Tax @ 10% on $2,825	282.50
There are no tax on dividend because it is not exceeding $38,600. Therefore tax liability of Carson is $282.50