Taylor, age 16, is claimed as a dependent by her parents. For 2016, she records the following income: $5,200 in wages from a summer job, $1,430 interest from a money market account, and $1,875 interest from City of Boston bonds. 1. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. 2. Assume that Taylor's tax rate is 10% and her parent's tax rate is 28%. If Taylor's parents file a joint return and report a taxable income of $130,000, then Taylor's tax is $___
Taylor, age 16, is claimed as a dependent by her parents. For 2016, she records the following income: $5,200 in wages from a summer job, $1,430 interest from a money market account, and $1,875 interest from City of Boston bonds. 1. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. 2. Assume that Taylor's tax rate is 10% and her parent's tax rate is 28%. If Taylor's parents file a joint return and report a taxable income of $130,000, then Taylor's tax is $___
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 37P
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Transcribed Image Text:Taylor, age 16, is claimed as a dependent by her parents. For 2016, she records
the following income: $5,200 in wages from a summer job, $1,430 interest from
a money market account, and $1,875 interest from City of Boston bonds.
1. Compute Taylor's "net unearned income" for the purpose of the kiddie tax.
2. Assume that Taylor's tax rate is 10% and her parent's tax rate is 28%. If
Taylor's parents file a joint return and report a taxable income of $130,000, then
Taylor's tax is $___
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