In 2018, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided...

90.2K

Verified Solution

Question

Accounting

In 2018, Carson is claimed as a dependent onhis parents' tax return. Carson's parents provided most of hissupport. What is Carson's tax liability for the year in each of thefollowing alternative circumstances? Use 2018 TaxRate Schedule, Dividends and Capital Gains Tax Rates, Estates andTrusts for reference. for reference.
a. Carson is 17 years old at year-end and earned $14,000 fromhis summer job and part-time job after school. This was his onlysource of income.
b. Carson is 23 years old at year-end. He is a full-time studentand earned $14,000 from his summer internship and part-time job. Healso received $5,000 of qualified dividend income.

Answer & Explanation Solved by verified expert

3.9 Ratings (582 Votes)

a Carson is 17 years old at yearend and earned 14000 from his summer job and parttime job after school This was his only source of income Tax liability 200 as calculated as below Gross incomeAGI 14000 is earned income Standard deduction 12000 Personal exemption 0 So net Taxable income will be AGISTANDARD DEDUCTION 1400012000 2000 Tax rate applicable 10 see rate schedule See Answer

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member