Determine the taxable income of each of the following dependents for 2020: a. Louis is 12 and
Question:
Determine the taxable income of each of the following dependents for 2020:
a. Louis is 12 and receives $1,250 in interest income.
b. Jackson is 16. He earns $2,050 from his newspaper route and receives $700 in dividends on GCM stock.
c. Loretta is 18. She earns $5,000 as a lifeguard during the summer. In addition, Loretta wins a rescue contest and receives a municipal bond worth $600. During the year, the bond pays $20 in interest.
d. Eva is 15. Her income consists of municipal bond interest of $750, stock dividends of $1,400, and interest credited to her savings account of $900.
e. Elaine is a college student. Her only income consists of $3,000 from her parttime job delivering pizzas. Her itemized deductions total $400.
f. Greg is 2. He has certificates of deposit given to him by his grandparents that pay $2,500 in interest.
Step by Step Answer:
Concepts In Federal Taxation 2021
ISBN: 9780357141212
28th Edition
Authors: Kevin E. Murphy, Mark Higgins, Randy Skalberg