Question

Mark and Emma are a married couple who file jointly. They have three dependent children who are​ full-time students in 2018. Mark and Emma provided $11,400 of support for each child. Information for each child is as​ follows:

	Brooke	Cheryl	Ashley
Age	21	18	16
Wages	2,900	9,000	6,100
interest income	2,800	2,500	3,000

Compute each​ child's tax, assuming the interest income is taxable.​ (Assume that none of the children provide any of their own​ support.)

(I have the first one set up)

Brooke's tax, assuming the interest income is taxable

Wages	2,900
interest income	2,800
adjusted gross income	5,700
minus:
Standard deduction	?
taxable income	?

Answer 1

Ans : Assuming Each child is Filling Tax return as Individual and Mark and Emma is claiming each child as Dependent in there return.

A) Brook's Taxable Income

Wages	$2,900
interest income	$2,800
adjusted gross income	$5,700
minus:
Standard deduction ((Wages + $350) or $1050 which ever is higher) but upto $6,350 In given case standard deduction is higher of ( ($2,900 + $350) or $1,050 Which ever is higher which is $3250 but up to $ 6,350. so standard deduction is	$3,250
Taxable income	$2,450

B) Cherly's Taxable Income

Wages	$9,000
interest income	$2,500
adjusted gross income	$11,500
minus:
Standard deduction ((Wages + $350) or $1050 which ever is higher) but upto $6,350 In given case standard deduction is higher of ( ($9,000 + $350) or $1,050 Which ever is higher which is $9,350 but up to $ 6,350. so standard deduction is $6,350	$6,350
Taxable income	$5,150

C) Ashley's Taxable Income

Wages	$6,100
interest income	$3,000
adjusted gross income	$9,100
minus:
Standard deduction ((Wages + $350) or $1050 which ever is higher) but upto $6,350 In given case standard deduction is higher of ( ($6,100 + $350) or $1,050 Which ever is higher which is $6,450 but up to $ 6,350. so standard deduction is $6,350	$6,350
Taxable income	$2,750