Problem $3-42($LO$.1,3,1)$

Paige, age $17,$ is a dependent of her parents. Her parents report taxable income of $$120,000$ on their joint return $($no qualified dividends or capital gains$).$ During $2024,$ Paige earned $$3,900$ pet sitting and $$4,600$ in interest on a savings account.

Click here to access the $2024$ tax rate schedule.

What are Paige's taxable income and tax liability for $2024?$

a$.$ Paige's total taxable income is $ $$ X $.$

b$.$ Paige's tax liability is $ $x.$

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To reduce the tax savings that result from shifting income from parents to children, the net unearned income of certain childr If it were the parents' income. This provision, commonly referred to as the "kiddie tax," applies to any child who is under age age $24$ if a full$-$time student$)$ and has unearned income of more than $$2,600.$