Asked Jan 30, 2019

Beatrice, age 12, is a dependent of her parents. She earned wages of 1500 and had taxable interest of 6500. Her parents tax rate is 33%. What is her taxable income?


Expert Answer

Since Beatrice is a dependent minor, her taxable income would be calculated as per section 1(j)(4) of Tax Cuts and Jobs Act (TCJA).


The taxable income for Beatrice can be calculated as follows :

Earned Income


Unearned Income




Gross Income




Standard Deduction u/s 63(c)(5)(A)

(Higher of:

A)1050 or,

B)Earned Income + 350 i.e. 1,500 + 350




Taxable Income

(The entire $6,150 is treated as unearned income because his $1,850 standard deduction offsets all of his earned income plus the first $350 of his unearned income.)


Tax Payable


The first $2,100 (the amount up to the kiddie tax unearned income threshold) is taxed at 10% under the regular rates for single taxpayers, resulting in $210 of tax.


For the remaining 4050 :


(10% on 0 to 2550)


Want to see the full answer?

See Solution

Check out a sample Q&A here.

Want to see this answer and more?

Solutions are written by subject experts who are available 24/7. Questions are typically answered within 1 hour.*

See Solution
*Response times may vary by subject and question.
Tagged in




Related Accounting Q&A

Find answers to questions asked by student like you
Show more Q&A

Q: GIFFCO contracted with the investment bank X.M. Retzoff to issue 25 million of short-term paper. The...

A: When debt securities are issued at commission, the fees and commission are deducted from the net pro...


Q: HH purchased new shelving for its store on April 1, 2018. The shelving is expected to have a 20-year...

A: Since, we only answer upto 3 sub-parts, we'll answer the first 3.Please resubmit the question and sp...


Q: Handy Harvey is a leading global manufacturer and marketer of power tools, hardware, and home improv...

A: On dividend declaration date, the dividend payable liabilities arises and since dividend are declare...


Q: I'm not understanding how to solve this problem. Please help, thanks!

A: Process firms accumulate production costs by process or department for a given eriod of time. Proces...


Q: Hills Company’s June 30 bank statement and the June ledger account for cash are summarized here:   ...

A: Prepare a bank reconciliation statement for Hills Company.


Q: 1. Find the proper FASB ASC citation that provides guidance on the measurement of an impairment loss...

A: Measurement of impairment loss for long-lived asset using two steps:Step1: “The entity tests the lon...


Q: GPC, Inc has a $150,000 mortgage liability. The mortgage is payable in monthly instatement of $1,543...

A: Step 1:Given:Mortgage Liability = $ 150,000Monthly Instalment = $1,543Interest Rate           = 12% ...


Q: The year end balance sheet of CP, In., include the following stockholders’ equity section (with cert...

A: 1.Determine the number of preferred shares have been issued.


Q: During the year ended December 31, SC engaged in the following transactions involving notes payable....

A: Journal entries is recording the of the transaction in the accounting journal in a chronological ord...