Taylor, age 18, is claimed as a dependent by her parents. For 2021, she has the following income: $6,000 wages from a summer job, $800 interest from a money market account, and $300 interest from City of Chicago bonds. If an amount is zero, enter "0". Click here to access the 2021 tax rate schedule. a. Determine the following: Taylor's standard deduction for 2021 is $ 12,550 Taylor's taxable income for 2021 is $ b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. Compute Taylor's income tax. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).]
Taylor, age 18, is claimed as a dependent by her parents. For 2021, she has the following income: $6,000 wages from a summer job, $800 interest from a money market account, and $300 interest from City of Chicago bonds. If an amount is zero, enter "0". Click here to access the 2021 tax rate schedule. a. Determine the following: Taylor's standard deduction for 2021 is $ 12,550 Taylor's taxable income for 2021 is $ b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. Compute Taylor's income tax. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).]
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 37P
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![Taylor, age 18, is claimed as a dependent by her parents. For 2021, she has the following income: $6,000 wages from a summer job, $800
interest from a money market account, and $300 interest from City of Chicago bonds.
If an amount is zero, enter "0".
Click here to access the 2021 tax rate schedule.
a. Determine the following:
Taylor's standard deduction for 2021 is $
12,550
Taylor's taxable income for 2021 is $
b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax.
Compute Taylor's income tax. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F8f61e626-7d33-482f-bf18-423884fdaa73%2F431bdeb4-d162-4dfc-a682-2ec080950d8a%2Fml6dj9h_processed.png&w=3840&q=75)
Transcribed Image Text:Taylor, age 18, is claimed as a dependent by her parents. For 2021, she has the following income: $6,000 wages from a summer job, $800
interest from a money market account, and $300 interest from City of Chicago bonds.
If an amount is zero, enter "0".
Click here to access the 2021 tax rate schedule.
a. Determine the following:
Taylor's standard deduction for 2021 is $
12,550
Taylor's taxable income for 2021 is $
b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax.
Compute Taylor's income tax. [Her parents file a joint return and have taxable income of $135,000 (no dividends or capital gains).]
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