Question

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?

b. She received $6,200 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. What is her tax liability?

c. She received $6,200 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student. What is her tax liability?

d. She received $6,200 of qualified dividend income. This is her only source of income. She is 16 years old at year-end. What is her tax liability?

Answer 1

a.	Sheryl's Tax Computation (Part-time job)
	Gross Income	6200
	Standard Deduction	-6200
	Taxable Income	0
	Kiddie tax	0
	Taxable Income	0
	Total Tax	0
b.	Sheryl's Tax Computation (income from corporate bonds)
	Description	Amount
	Gross Income	6200
	Standard Deduction	-1000
	Taxable Income	5200
	Kiddie tax	780
	Taxable Income	0
	Total Tax	780
c.	Sheryl's Tax Computation (income from corporate bonds)
	Description	Amount
	Gross Income	6200
	Standard Deduction	-1000
	Taxable Income	5200
	Kiddie tax	780
	Taxable Income	0
	Total Tax	780
d.	Sheryl's Tax Computation (dividend income)
	Description	Amount
	Gross Income	6200
	Standard Deduction	-1000
	Taxable Income	5200
	Kiddie tax	780
	Taxable Income	0
	Total Tax	780