In 2017, Carson is claimed as a dependent on his parent's tax return. His parents' ordinary income

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In 2017, Carson is claimed as a dependent on his parent's tax return. His parents' ordinary income marginal tax rate is 28%. Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances?
a. Carson is 17 years old at year-end and earned $12,000 from his summer job and part-time job after school. This was his only source of income.
b. Carson is 23 years old at year-end. He is a full-time student and earned $12,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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Essentials Of Federal Taxation 2018

ISBN: 9781260007640

9th Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

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