Taylor, age 18, is claimed as a dependent by her parents. For 2016, she records the following income: $4,000 wages from a summer job, $1,800 interest from a money market account, and $2,000 interest from City of Boston bonds.
a. What is Taylor's taxable income?
b. What is Taylor's Federal income tax? Her parents file a joint return and report taxable income of $130,000 (no dividends or capital gains).