For Problems 3, 4, 5 and 6, use Example 8-5 in the textbook as a template but apply the 2018 income tax rates for individuals and for trusts. Remember that the standard deduction is the greater of (i) $1,050 or (ii) the childs earned income plus $350 (not to exceed $12,000). Also remember that the personal exemption does not apply.

4. Compute the kiddie tax where child age 13 has $5,000 of unearned income in 2018 and no earned income.

Description	Amount	Explanation
Gross income /AGI	0
Minimum standard
Personal exemptions	0
Taxable income
Gross unearned income minus $ 2,100
Net unearned income
Marginal rate (parent)
Kiddie tax
Taxable income taxed at Kid tax rates
Tax on taxable income using kid tax rates
Kid total tax liability

Name:_____________________________

5. Adam (age 17) has $2,000 of earned income from delivering newspapers and $7,000 of unearned ordinary income. Use Example 8-5 in the textbook but apply the 2018 income tax rates for individuals and for trusts.

Description	Amount	Explanation
Gross income /AGI	0
Minimum standard
Personal exemptions	0
Taxable income
Gross unearned income minus $ 2,100
Net unearned income
Marginal rate (parent)
Kiddie tax
Taxable income taxed at Kid tax rates
Tax on taxable income using kid tax rates
Kid total tax liability

6. Adam (age 17) has $2,000 of earned income from delivering newspapers and $7,000 of unearned capital gain income. Use Example 8-5 in the textbook but apply the 2018 income tax rates for individuals and for trusts

Description	Amount	Explanation
Gross income /AGI	0
Minimum standard
Personal exemptions	0
Taxable income
Gross unearned income minus $ 2,100
Net unearned income
Marginal rate (parent)
Kiddie tax
Taxable income taxed at Kid tax rates
Tax on taxable income using kid tax rates
Kid total tax liability