Question

Schedule X-Single Schedule Z-Head of Honsehold If taxable income is over: But not over The tax is If taxable income is But not over The tax iss s 9.525 110% of taxable income $13.000 10% of tauble income S 9.525 S 3.700 | S952.50 plus 12% of the excess over $9.525 S 13,600 $ 51,000 | SL360 plus 12% of the excess over $13,600 S 38,700 $2.500 | S453.50 plus 22% of s 51,300 ss2.500 |$5944 plus 22% of the escess over the excess over 51,500 533,700 S 32.500 si57.500 | si4.0S9.50 plus 24% 52.500 si 57,500 S12b98 plus 24% of the encess over 52.500 of the excess over $32.500 $157.500 $200.000 | S32.00950 plus 32% 157.500 S200000 | S3069S plas 32% of of the excess over $157.500 the escess over $157.500 $200,000 $500,000 | S45.60950 plus 35% $200,000 5500.000 |S4296 plus 35% of of the excess over the excess over $200,000 500,000 si 50.609 50 plus 37% of the excess over 500,000 5300.000 S149296 plus 37% of the excess over Schedule Y- 1-Married Filiag Joimtly or Qualitying Widow(er) Schedule Y-2-Married Fil㎎ Separately If taxable income But not overt The tax ist If taxable income is But not over The tax is is overs $19.050 110% ofusable income $ 0 $ 9325 10% oftatable income S 19.050 s 77,400 $1,905 plus 12% of S 9.525 S 3.700 | S952S0 plus 12% of the excess over $9.525 the excess over $19.050 77,400 $165.000 | $3.907 plus 22% of S 33.700 $$2S00 | S4A53S0 plus 22%of the excess over 577,400 the excess over 533,700 165.000 531 sooo | s25, 179 plus 24% of s$2,500 the excess over $165,000 of the excess over $52.500 |SS4, 17 9 plus 32% of 5315.000 S400.000 $157.500 I s32.009 so plus 32% 200,000 the excess over 315,000 of the escess over $157500 $400,000 s600,000 |591.379 plus 35% of 5200.000 5300.000 | S45.60950 plus 35% the excess ovEr of the escess over 161.379 plus 37% of the excess over 600,000 5300,000 S00609 50 plus 37% of the escess over

Answer 1

Part A

Description	Amount	Explanation
(1)Gross income/AGI	5300	$5300 in wages All earned income
(2)Standard deduction for dependent on another tax return	(5650)	Earned income + $350
(3)Taxable income	0	(1) + (2)
Total tax	0

Part B

Description	Amount	Explanation
(1)Gross income/AGI (All unearned income)	5300	$5300 interest income (All unearned income)
(2) Minimum standard deduction	(1050)	Minimum for taxpayer claimed as dependent on another return
(3) $350 plus earned income	350	$350 + 0 earned income
(4)Standard deduction for dependent on another tax return	1050	Greater of (2) and (3)
(5)Taxable income	4250	(1) − (4)
(6) Gross unearned income minus $2,100	3200	(1) − $2,100
(7)Net unearned income	3200	Lesser of (5) or (6)
(8)Kiddie tax	411	[($2,550 x 10%) + ((7) - $2,550) × 24%)], trust and estate tax rate schedule)
(9)Taxable income taxed at Sheryl’s tax rate	1050	(5) − (7)
(10)Sheryl’s income tax rate	10%	Single filing status
(11)Tax on taxable income using Sheryl’s rate	105	(9) × (10)
Total tax	516	(8) + (11)

Part C

Description	Amount	Explanation
(1)Gross income/AGI (All unearned income)	5300	$5300 interest income (All unearned income)
(2) Minimum standard deduction	(1050)	Minimum for taxpayer claimed as dependent on another return
(3) $350 plus earned income	350	$350 + 0 earned income
(4)Standard deduction for dependent on another tax return	1050	Greater of (2) and (3)
(5)Taxable income	4250	(1) − (4)
(6) Gross unearned income minus $2,100	3200	(1) − $2,100
(7)Net unearned income	3200	Lesser of (5) or (6)
(8)Kiddie tax	411	[($2,550 x 10%) + ((7) - $2,550) × 24%)], trust and estate tax rate schedule)
(9)Taxable income taxed at Sheryl’s tax rate	1050	(5) − (7)
(10)Sheryl’s income tax rate	10%	Single filing status
(11)Tax on taxable income using Sheryl’s rate	105	(9) × (10)
Total tax	516	(8) + (11)

Part D