Calculate tax liability, Taxation

Assignment Help:

Hello,

I am zainab ali, i want help in Tax assignment..

In 2012 Joe, age 15, earned $2900 from acting and had $12,200 of interest income and $14,000 of taxable qualified dividend income. Joe’s parents claim an exemption for him on their own return. His parents’ MTR is 25%. What is Joe’s tax liability?


Related Discussions:- Calculate tax liability

How much taxable income, Stewie loaned a friend $12,500 to buy some stock 3...

Stewie loaned a friend $12,500 to buy some stock 3 years ago. In the current year the debt became worthless. a. How much is Stewie's deduction for the bad debt for this year? (Assu

Individual retirement account, Individual Retirement Account (IRA) - An IRA...

Individual Retirement Account (IRA) - An IRA is a personal savings plan which allows an individual to make cash contributions per year dependent on individual's adjusted gross inco

Tax questions, 1.   Don and Harvey began operations as a partnership on Oct...

1.   Don and Harvey began operations as a partnership on October 3, 2010. The company spent $60,500 on organization costs that year. How much can the company deduct in 2010 relatin

What is taxable gift in the year, Wes and Donna were the only members of an...

Wes and Donna were the only members of an LLC, and they fended off unwated takeover suitors with a clause in the charter that shares could change hands only with unanimous approval

Previously asked questions, Can I get the answers to questions asked by oth...

Can I get the answers to questions asked by others? they are on this page http://www.expertsmind.com/questions/corporate-tax-301114747.aspx#

Corporate Taxation, A owns all of the stock of X. The stock’s basis is $2,...

A owns all of the stock of X. The stock’s basis is $2,300. X has a total of current earnings and profits of $1,500 but accumulated earnings and profits of negative $500 (i.e., an

Tax-exempt commercial paper, An unsecured short-term loan, generally issued...

An unsecured short-term loan, generally issued to finance short-term liabilities, which gives the debt holders (bondholders) some level of tax choice on the earnings from their deb

Taxation implications, 1. Shortly after he retired in November 2009, Paul M...

1. Shortly after he retired in November 2009, Paul Martyn decided to set up a coffee retail shop in leased premises close to the Camberwell where he lived.  The main products sold

Tax corporation return, King Corporation, an accrual method taxpayer, repor...

King Corporation, an accrual method taxpayer, reports the following results for 2014: Regular taxable income before regular tax NOL deduction $800,000 Minus: Regular tax NOL deduc

Expertsmind

3/14/2013 12:57:56 AM

Adjusted Gross Income: 

Earned Income: 

            Income from Acting:                                                  $2900 

Unearned Income: 

            Interest Income:                                                          $12200

            Taxable Qualified Dividend Income:                         $14000 

                                                                                                $26200

 

Total Adjusted Gross Income                                                                      $29100 

Less:    The Larger of:

Standard Deduction                                 $950 

Or 

$300 plus earned income          

 

Earned income:     Income from acting    

                              ($300 + $2900)           $3200                          $3200

 

 

Total Taxable Income                                                                                                           $25900

Joe’s Tax Liability                                        

 

Joe’s Net Unearned Income

 

Interest Income                                               $12200

Taxable Qualified Dividend Income:             $14000

 

Net Unearned Income:                                   $26200

 

Unearned Income > $1900                             $24300

 

 

Out of $ 24300 unearned Income Taxable Qualified Income is taxable @15%

 

So, Tax on Taxable Qualified Dividend Income

 

$14000*15%                           =          $2100 

 

Tax on other Unearned Income taxable on parent’s taxed rates:

 

Parent’s tax rate is 25%

 

($10300*25%)                                    =          $2576

                                   

 

Tax on taxable Income minus Net Unearned Income

 

Tax at child rate @ 10%

 

($25900-$24300)*10%           =          $160

 

Total Tax Liability                =          $4836  

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd