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

Beneficial for gencorps shareholders, In May 2003, Gencorp acquired Sequa C...

In May 2003, Gencorp acquired Sequa Corp.'s propulsion subsidiary ARC for $133million in cash and $11 million in transactions costs. Table below lists selected information about

Tds, Dawn's new car has a FMV of $20,000 and it weighs 3,000 pounds. The co...

Dawn's new car has a FMV of $20,000 and it weighs 3,000 pounds. The county also assessed a property tax on the car. The tax was 2% of its FMV and $10 per hundred weight. The car is

Qualified residence interest, Several years ago, Magdelena purchased a new ...

Several years ago, Magdelena purchased a new residence for $300,000. Currently, the outstanding mortgage on the residence is $260,000. The current fair value of the home is $330,00

The maximum capital cost allowance claim, During the current year, Denos Co...

During the current year, Denos Corporation incurred costs of $45,000 for leasehold improvements to its newly rented building. The lease was signed in the current year for an initia

Which of the following entities may not use the cash method, Which of the f...

Which of the following entities may not use the cash method of accounting? A partnership with average annual gross receipts in excess of $5 million. A C corporation whose avera

Calculate the paid tax, Many years ago, in an effort to keep its costs down...

Many years ago, in an effort to keep its costs down, Prince Enterprises hired a bookkeeper rather than a fully qualified accountant to prepare its accounting records and corporate

Share returns, The tab-delimited text file C223C323_A1_S1_2013_Q1_Q2.txt co...

The tab-delimited text file C223C323_A1_S1_2013_Q1_Q2.txt contains data on the share price of FirstGroup plc (FirstGroup), the public transport company, the share price of Cairn En

Income tax return, Use the following information to complete Phillip and Cl...

Use the following information to complete Phillip and Claire Dunphy's 2012 federal income tax return. If information is missing, use reasonable assumptions to fill in the gaps. Ign

Tax Individuals , Hi Dear, I did not upload it yet, because I want you to...

Hi Dear, I did not upload it yet, because I want you to tell me if you have the ability to do that within two hours or no,,!! The assignments are MC and three or four probl

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