Reference no: EM132730573
Jerry and Jess (under 60) have 3 children. They inherited money in January and retired. Here is their income.
Inherited Assets 2,000,000
Chase Interest Income 75,000
Municipal bond interest 40,000
Qualifying dividends 25,000
They have itemized deductions of $15,000. They provide over half of the support of all of their children who live with them and are:
Jeff 18 not a student making $10,000
Barb 20 not a student making $3,000
Stephanie 21 a full time student making $8,000
Use 2019 tax law
Question 1: Is Jeff a dependent? Why?
Question 2: Is Barb a dependent? Why?
Question 3: Is Stephanie a dependent? Why?
Question 4: Compute their adjusted gross income.
Question 5: Compute their taxable income.
Question 6: Compute their tax liability.
Question 7: Compute the tax liability for their children.