Question

3) Stan and Francine Smith, ages 46 & 44 respectively, filed a joint return this year. They provided all of the support for their 17 year old daughter, Hayley, who is unemployed, not too bright, stuck-up, and had no gross income. Their 14 year old son, Steve, was a full time student who has $964 of interest income from corporate bonds. Their 10 year old son, Roger, is also a full time student who had $6,446 of 3.446 income from his part time job. None of the children are self-supporting. Hayley, Steve, and Roger lived with their parents all year. They also provided more than 50% of support to Stan's childhood friend, Avery Bullock, age 44, who lives in his mother's home. Stan and Francine had combined gross income of $159,620 their deductions for adjusted gross income amounted to $36,044 and their total itemized deductions amounted to $26,054. Calculate the Smiths' taxable income. 4) How much is Stan and Francine's tax liability?

Answer 1

( 3) stan and Francine smith are husband and wife and have 3 children and they filled there return jointly

Steve is 14 year and fully dependent on Mr & Mrs smiths And earned $964 interest which will be included in his parents income , whereas Roger 10 year old has earned part time wages of $3446 which is more than $1100 so he has to file his return Separtely as per federal tax rules .

statement showing Taxable Income of Smiths as per tax slab 2019

Particulars	amount	explanation
Gross Income	$159620
Interest Earned By steve	$964
Total Gross Income	$160584
Less deduction	-$36044
Adjusted Gross Income	$124540
less Itemised deduction	-$26054
Taxable Income	$98486

Smiths will be getting child tax credits for there children roger and Steve i.e 2000 each

And for his friend dependent i.e avery and there daughter Hayley which is 17 year old $500 each

Roger taxable income =$3446 will not be clubbed as child income earned through interest and dividend is clubbed with parents

so roger earned income through wages

Answer (4)

Tax laibilty for stan & Francine

Particulars	amount
Taxable Income	$98486
Income tax liability of income upto $19400@ 10%	1940
Income tax liability of income $59550@ 12%	7146
Income tax Liability of income $19536 @ 22%	4297.92
Total Tax	13383.92
Less child tax credits for 2 children @2000 each	4000
Less 2 dependents @500 each	1000
Net tax Liability as per tax slab 2019	8383.92

Smiths will be getting child tax credits for there children roger and Steve i.e 2000 each

And for his friend dependent i.e avery and there daughter Hayley which is 17 year old $500 each