Answer the following questions using the 2020 tax rate schedule (attached). 1. In 2020, Simon, age 12, has interest income of $6,900 on funds he inherited from his grandmother, and no earned income....


Answer the following questions using the 2020 tax rate schedule (attached).


1. In 2020, Simon, age 12, has interest income of $6,900 on funds he inherited from his grandmother, and no earned income. He has no investment expenses. His parents have taxable income of $82,250 and file a joint return. Assume that no parental election is made.


Simon's net unearned income is $___


Simon's allocable parental tax is $___


Simon's total tax is $_____


2. Paige, age 17, is a dependent of her parents. Her parents report taxable income of $120,000 on their joint return (no qualified dividends or capital gains). During 2020, Paige earned $3,900 pet sitting and $4,300 in interest on a savings account.


Paige's total taxable income is $___


Paige's tax liability is $___



Jun 09, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here