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Problem 3-40 (Algorithmic) (LO. 1, 3, 6, 7)

Taylor, age 13, is a dependent of her parents. In the current year, she has the following income: $4,200 wages from a summer job, $1,495 interest from a money market account, and $1,875 interest from City of Boston bonds.

If an amount is zero, enter "0".

a. Determine the following: Taylor's standard deduction for the year is $.

Taylor's taxable income for the year is $.

b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. $

Click here to access the 2019 tax rate schedule.

Compute Taylor's tax liability. $.

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Chris and Heather are engaged and plan to get married. Chris is a full-time student and earns $8,500 from a part-time job. With this income, student loans, savings, and nontaxable scholarships, he is self-supporting. For the year, Heather is employed and reports $83,600 in wages.

Click here to access the standard deduction table to use. Click here to access the Tax Rate Schedules. If an amount is zero, enter, "0". Do not round your intermediate computations. Round your final answer to nearest whole dollar. a. Compute the following:

	Chris Filing Single		Heather Filing Single
Gross income and AGI	$		$
Standard deduction
Taxable income	$		$
Income tax	$		$

b. Assume that Chris and Heather get married in 2019 and file a joint return. What is their taxable income and income tax? Round your final answer to nearest whole dollar.

	Married Filing Jointly
Gross income	$
Standard deduction
Taxable income	$
Income tax	$

c. How much Federal income tax can Chris and Heather save if they get married in 2019 and file a joint return? $