Question

In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided most of his support.
What is Carson's tax liability for the year in each of the following alternative circumstances?

a. Carson is 17 years old at year-end and earned $15,575 from his summer job and part-time job after school. This was his only source of income.

b. Carson is 23 years old at year-end. He is a full-time student and earned $15,575 from his summer internship and part-time job. He also received $5,820 of qualified dividend income.

Answer 1

ANSWER:

As per the given Question

• As per Internal revenue code person is dependent and under the age of 65 and his earned only income does not exceed $12000 then he not required to file return.
• Here carson is 17 year old and dependent on his parents and earned from his summer job and part time job after school $15,275 which is above $12000 so he has to file return of income.
• Standard deduction greater of following

(1) $1050

(2) Earned income + $350 (but the total can't be more than basic standard deduction)

So here $12000

So $12000 is higher available as deduction.

So $15275 - $12000 = $3275

Tax $3275 * 10% = $327.50

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