I need help with these four questions please and thank you! b. She received $7,0
ID: 2541175 • Letter: I
Question
I need help with these four questions please and thank you!
b. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end.
c. She received $7,000 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student.
d. She received $7,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end.
Required information The following information applies to the questions displayed below. In 2017, Sheryl is claimed as a dependent on her parents' tax return. Her parents' ordinary income marginal tax rate is 35 percent. Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule for reference a. She received $7,000 from a part-time job. This was her only source of income. She is 16 years old at year-end Tax liabilityExplanation / Answer
Assuming question from USA , kiddies tax applies till 19 year and in case of student till 24 years
Child can take 1050 take come without federal tax and income beyond 2100 is taxable @ parent rate.
In question
(1) 7000-2100 = 4900*35% ie 1715
(2) 7000-2100= 4900*35% i e 1715
(3) 7000-2100 =4900*35% i e 1715 ( for students up to 24 year)
(4) Dividends =7000-2100 = 4900 *15% is 735 ( Tax on dividend is 15% )