Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. problem 3-37 (algorithmic) (lo.3,7) taylor, age 14

Problem 3-37 (Algorithmic) (LO.3,7) Taylor, age 14, is claimed as a dependent by her parents....

50.1K

Verified Solution

Question

Accounting

image
Problem 3-37 (Algorithmic) (LO.3,7) Taylor, age 14, is claimed as a dependent by her parents. For 2020, she has the following income: $4,400 wages from a summer job, $1,950 interest from a money market account, and $1,875 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 "o". Click here to access the 2020 tax rate schedule. a. Taylor's standard deduction for 2020 is s 4,350 X Taylor's taxable income for 2020 is 1,450 X Chica 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 to any child who is under ape 19 (or under age 24 if a full-time student and has unearned income of more than $2,200. b. Compute Taylor's "net unearted Income for the purpose of the kiddie tax. 1,800 X Compute Taylor's tax liability. Ther parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).) 2,200 X

Answer & Explanation Solved by verified expert
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

Other questions asked by students