Calculate tax liability, Taxation

Assignment Help:

Hello,

I am zainab ali, i want help in Tax assignment..

In 2012 Joe, age 15, earned $2900 from acting and had $12,200 of interest income and $14,000 of taxable qualified dividend income. Joe’s parents claim an exemption for him on their own return. His parents’ MTR is 25%. What is Joe’s tax liability?


Related Discussions:- Calculate tax liability

Uganada revenue authority, write a program on Uganda revenue authority tax...

write a program on Uganda revenue authority taxation based on import and export cargo.

Previously asked questions, Can I get the answers to questions asked by oth...

Can I get the answers to questions asked by others? they are on this page http://www.expertsmind.com/questions/corporate-tax-301114747.aspx#

Determine net operating loss carryover, Good Health Company Inc. began busi...

Good Health Company Inc. began business in 2007 and has operating results as listed below. In 2009 & 2010 it generated net operating losses of $75,000 and $120,000 respectively. Th

INTRODUCTION TO VAT, 31 VAT WAS FIRST INTRODUCED AS A TAX IN WHICH YEA...

31 VAT WAS FIRST INTRODUCED AS A TAX IN WHICH YEAR AND IN WHICH COUNTRY?

Prepare a state tax return, Based on the information provided, you are to c...

Based on the information provided, you are to complete a 2011 Form 1040 and any supporting schedules/forms for Dave and Amy Smith. You do not need to prepare a state tax return. Yo

Assignment , I have the whole case and this is the question (Canadian Taxa...

I have the whole case and this is the question (Canadian Taxation) Compute Net Income, Taxable Income and Net Federal Tax Payable for 2012 for Sandra, Steven, Annabelle and Ronnie

Compute income tax liability, Dan and Cheryl are married, file a joint retu...

Dan and Cheryl are married, file a joint return, and have no children. Dan is a pharmaceutical salesman and Cheryl is a nurse at a local hospital. Dan%u2019s SSN is 400-20-1000 and

Decide to provide any calculations, This assignment is to be done ALONE. It...

This assignment is to be done ALONE. It is due IN CLASS by the posted due date with no exceptions. Other than the textbook and class notes, the ONLY other resources that should be

Statements on Standards for Tax Services, 28) Explain how Treasury Departme...

28) Explain how Treasury Department Circular 230 differs from the AICPA’s Statements on Standards for Tax Services.

Expertsmind

3/14/2013 12:57:56 AM

Adjusted Gross Income: 

Earned Income: 

            Income from Acting:                                                  $2900 

Unearned Income: 

            Interest Income:                                                          $12200

            Taxable Qualified Dividend Income:                         $14000 

                                                                                                $26200

 

Total Adjusted Gross Income                                                                      $29100 

Less:    The Larger of:

Standard Deduction                                 $950 

Or 

$300 plus earned income          

 

Earned income:     Income from acting    

                              ($300 + $2900)           $3200                          $3200

 

 

Total Taxable Income                                                                                                           $25900

Joe’s Tax Liability                                        

 

Joe’s Net Unearned Income

 

Interest Income                                               $12200

Taxable Qualified Dividend Income:             $14000

 

Net Unearned Income:                                   $26200

 

Unearned Income > $1900                             $24300

 

 

Out of $ 24300 unearned Income Taxable Qualified Income is taxable @15%

 

So, Tax on Taxable Qualified Dividend Income

 

$14000*15%                           =          $2100 

 

Tax on other Unearned Income taxable on parent’s taxed rates:

 

Parent’s tax rate is 25%

 

($10300*25%)                                    =          $2576

                                   

 

Tax on taxable Income minus Net Unearned Income

 

Tax at child rate @ 10%

 

($25900-$24300)*10%           =          $160

 

Total Tax Liability                =          $4836  

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd