Taylor, age 15, is claimed as a dependent by her parents. For 2022, she has the...
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Taylor, age 15, is claimed as a dependent by her parents. For 2022, she has the following income: $3,800 wages from a summer job, $1,625 interest from a money market account, and $2,100 interest from City of Chicago bonds. If required, round your answers to the nearest dollar. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Click here to access the 2022 tax rate schedule. a. Taylor's standard deduction for 2022 is $ Taylor's taxable income for 2022 is $ Feedback 12,400 X. 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 any child who is under age 19 (or under age 24 if a full-time student) and has unearned income of more than $2,300. b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. Compute Taylor's tax liability. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).] Single-Schedule X If taxable income is: Over- $ 0 If taxable income is: Over- $ 0 20,550 83,550 178,150 But not over- 340,100 431,900 647,850 $ 10,275 41,775 89,075 170,050 215,950 539,900 The tax is: But not over- ......... 10% $ 1,027.50 +12% 4,807.50 +22% 10,275 41,775 89,075 170,050 215,950 539,900 Married filing jointly or Qualifying widow(er)- Schedule Y-1 15,213.50 +24% 34,647.50 + 32% 49,335.50 + 35% 162,718.00 + 37% The tax is: $ 20,550 83,550 178,150 340,100 431,900 69,295.00+ 32% 647,850 98,671.00 + 35% 174,253.50 +37% .........10% 2022 Tax Rate Schedules $ 2,055.00 +12% 9,615.00 +22% 30,427.00 +24% of the amount over- $ 0 10,275 41,775 89,075 170,050 215,950 539,900 of the amount over- $ 0 20,550 83,550 178,150 340,100 431,900 647,850 Head of household-Schedule Z If taxable income is: Over- $ If taxable income is: Over- $ 0 14,650 55,900 89,050 170,050 215,950 539,900 Married filing separately-Schedule Y-2 0 10,275 41,775 89,075 But not over- 170,050 215,950 323,925 $ 14,650 55,900 89,050 170,050 215,950 539,900 But not over- The tax is: ......... 10% $ 1,465.00+ 12% 6,415.00 +22% 13,708.00 +24% 33,148.00 + 32% 47,836.00 + 35% 161,218.50 +37% $ 10,275 41,775 89,075 170,050 215,950 323,925 The tax is: ......... 10% $ 1,027.50 +12% 4,807.50 +22% 15,213.50 +24% 34,647.50 +32% 49,335.50 + 35% 87,126.75 +37% of the amount over- $ 0 14,650 55,900 89,050 170,050 215,950 539,900 of the amount over- $ 0 10,275 41,775 89,075 170,050 215,950 323,925 Taylor, age 15, is claimed as a dependent by her parents. For 2022, she has the following income: $3,800 wages from a summer job, $1,625 interest from a money market account, and $2,100 interest from City of Chicago bonds. If required, round your answers to the nearest dollar. If required, round your answers to the nearest dollar. If an amount is zero, enter "0". Click here to access the 2022 tax rate schedule. a. Taylor's standard deduction for 2022 is $ Taylor's taxable income for 2022 is $ Feedback 12,400 X. 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 any child who is under age 19 (or under age 24 if a full-time student) and has unearned income of more than $2,300. b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. Compute Taylor's tax liability. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).] Single-Schedule X If taxable income is: Over- $ 0 If taxable income is: Over- $ 0 20,550 83,550 178,150 But not over- 340,100 431,900 647,850 $ 10,275 41,775 89,075 170,050 215,950 539,900 The tax is: But not over- ......... 10% $ 1,027.50 +12% 4,807.50 +22% 10,275 41,775 89,075 170,050 215,950 539,900 Married filing jointly or Qualifying widow(er)- Schedule Y-1 15,213.50 +24% 34,647.50 + 32% 49,335.50 + 35% 162,718.00 + 37% The tax is: $ 20,550 83,550 178,150 340,100 431,900 69,295.00+ 32% 647,850 98,671.00 + 35% 174,253.50 +37% .........10% 2022 Tax Rate Schedules $ 2,055.00 +12% 9,615.00 +22% 30,427.00 +24% of the amount over- $ 0 10,275 41,775 89,075 170,050 215,950 539,900 of the amount over- $ 0 20,550 83,550 178,150 340,100 431,900 647,850 Head of household-Schedule Z If taxable income is: Over- $ If taxable income is: Over- $ 0 14,650 55,900 89,050 170,050 215,950 539,900 Married filing separately-Schedule Y-2 0 10,275 41,775 89,075 But not over- 170,050 215,950 323,925 $ 14,650 55,900 89,050 170,050 215,950 539,900 But not over- The tax is: ......... 10% $ 1,465.00+ 12% 6,415.00 +22% 13,708.00 +24% 33,148.00 + 32% 47,836.00 + 35% 161,218.50 +37% $ 10,275 41,775 89,075 170,050 215,950 323,925 The tax is: ......... 10% $ 1,027.50 +12% 4,807.50 +22% 15,213.50 +24% 34,647.50 +32% 49,335.50 + 35% 87,126.75 +37% of the amount over- $ 0 14,650 55,900 89,050 170,050 215,950 539,900 of the amount over- $ 0 10,275 41,775 89,075 170,050 215,950 323,925
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a Taylors standard deduction for 2022 is 977 tan Year 2022 Standard deduction G... View the full answer
Related Book For
South Western Federal Taxation 2018 Essentials Of Taxation Individuals And Business Entities
ISBN: 9781337386173
21st Edition
Authors: William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
Posted Date:
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