eBook Calculator Exercise 3-21 (Algorithmic) (LO. 7) In 2020, Simon, age 12, has interest income of $5,820 on funds he inherited from his grandmother, and no earned income. He has no investment expenses. His parents have taxable income of $82,250 and file a joint return. Assume that no parental election is made. Click here to access the 2020 tax rate schedule. If required, round the tax computations to the nearest dollar. Simon's net unearned income is 3,620 Simon's allocable parental tax is 769.40 X. Simon's total tax is Feedback Check My Work To reduce the tax savings that result from shifting income from parents to children, the net unearned income (commonly called investment income) of certain children is taxed using special rules. This provision, commonly referred to as the kiddie tax, applies to any child who is under age 19 (or under age 24 if a full-time student). 0313,03 upda.docx a 11104 AM 10/2020 ... 10% of the amount over $ 0 14,100 53,700 85,500 163,300 207,350 518,400 2020 Tax Rate Schedules Single-Schedule X Head of household --Schedule z If taxable of the If taxable Income is: But not amount incomele But not Over over The tax is: over Over- over The tax is: $ 0 $ 9,875 ... 10% $ 0 $ 0 $ 14,100 9,875 40,125 $ 987.50 +12% 9,875 14,100 53,700 $ 1.410.00 + 12% 40,125 85.525 4,617.50 +22% 40,125 53700 85,500 6,162.00 +22% 85.525 163,300 14,605.50 +24% 85,525 85,500 163,300 13,158.00 +24% 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 207,350 518,400 47,367.50 + 35% 207,350 207,350 518.400 45,926.00 + 35% 518.400 156,235.00 + 37% 518,400 518,400 154,793.50 +37% Married filing jointly or Qualifying widow(er) Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over over The taxis: over Over ove The tax is: $ 0 $ $ 19.750 0 0 $ $ 9,875 19,750 80,250 $ 1,975.00 + 12% 19,750 9.875 40,125 $ 987.50 +124 80,250 171.050 9.235.00 + 22% 80,250 40,125 85.525 4.617.50 +224 171,050 326,600 29,211.00 +24% 171,050 85,525 163.300 14,605.50 +24 326.600 414,700 66,543.00 + 329 163,300 326,600 207,350 33,271.50+32 414,700 622.050 94,735.00+ 35% 414,700 207 350 311,025 47,367.50+ 35 167,307.50 +37% 311,025 622,050 622,050 83,653.75 37 of the amount over $ 0 9.875 ... 10% .. 109 40,125 85.525 163,300 207,350 311,025 eBook Calculator Exercise 3-21 (Algorithmic) (LO. 7) In 2020, Simon, age 12, has interest income of $5,820 on funds he inherited from his grandmother, and no earned income. He has no investment expenses. His parents have taxable income of $82,250 and file a joint return. Assume that no parental election is made. Click here to access the 2020 tax rate schedule. If required, round the tax computations to the nearest dollar. Simon's net unearned income is 3,620 Simon's allocable parental tax is 769.40 X. Simon's total tax is Feedback Check My Work To reduce the tax savings that result from shifting income from parents to children, the net unearned income (commonly called investment income) of certain children is taxed using special rules. This provision, commonly referred to as the kiddie tax, applies to any child who is under age 19 (or under age 24 if a full-time student). 0313,03 upda.docx a 11104 AM 10/2020 ... 10% of the amount over $ 0 14,100 53,700 85,500 163,300 207,350 518,400 2020 Tax Rate Schedules Single-Schedule X Head of household --Schedule z If taxable of the If taxable Income is: But not amount incomele But not Over over The tax is: over Over- over The tax is: $ 0 $ 9,875 ... 10% $ 0 $ 0 $ 14,100 9,875 40,125 $ 987.50 +12% 9,875 14,100 53,700 $ 1.410.00 + 12% 40,125 85.525 4,617.50 +22% 40,125 53700 85,500 6,162.00 +22% 85.525 163,300 14,605.50 +24% 85,525 85,500 163,300 13,158.00 +24% 163,300 207,350 33,271.50 + 32% 163,300 163,300 207,350 31,830.00 + 32% 207,350 518,400 47,367.50 + 35% 207,350 207,350 518.400 45,926.00 + 35% 518.400 156,235.00 + 37% 518,400 518,400 154,793.50 +37% Married filing jointly or Qualifying widow(er) Married filing separately-Schedule Y-2 Schedule Y-1 If taxable of the If taxable income is: But not amount income is: But not Over over The taxis: over Over ove The tax is: $ 0 $ $ 19.750 0 0 $ $ 9,875 19,750 80,250 $ 1,975.00 + 12% 19,750 9.875 40,125 $ 987.50 +124 80,250 171.050 9.235.00 + 22% 80,250 40,125 85.525 4.617.50 +224 171,050 326,600 29,211.00 +24% 171,050 85,525 163.300 14,605.50 +24 326.600 414,700 66,543.00 + 329 163,300 326,600 207,350 33,271.50+32 414,700 622.050 94,735.00+ 35% 414,700 207 350 311,025 47,367.50+ 35 167,307.50 +37% 311,025 622,050 622,050 83,653.75 37 of the amount over $ 0 9.875 ... 10% .. 109 40,125 85.525 163,300 207,350 311,025