In the following independent case determine the maximum amount of 2019 personal tax credits, including transfers from a spouse or dependent, that can be applied against federal Tax Payable by the taxpayer. A calculation of tax payable is not required, only the applicable credits.

 Ms. Jones is married and has net income for tax purpose of $123,000 none of which is employment income or income from self employment. her husband is currently unemployed, but has interest income from investments of $3750. Her 20 year old dependent son attends university and lives at home. Her son has Net income for tax purposes of $4800 and does not agree to transfer his tuition credit to her.

Answer rating: 100% (QA)

Kiddie Tax The kiddie tax applies to unearned income for children under the age of 19 and colle... View the full answer