Question: In 2016, Sheryl is claimed as a dependent on her parent's tax return. Her parents' ordinary income marginal tax rate is 35%. Sheryl did not
In 2016, Sheryl is claimed as a dependent on her parent's tax return. Her parents' ordinary income marginal tax rate is 35%. 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 from a part-time job. This was 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. This is her only source of income. She is 16 years old at year-end.
c. She received $7,000 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.
d. She received $7,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end.
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a Sheryls tax liability is 70 That Sheryl has no unearned income and is not subject to the kiddie tax Description Amount Explanation 1 Gross incomeAGI 7000 7000 in wages All earned income 2 Standard d... View full answer
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