1:2-47 Wages Interest Adjusted gross income Standard deduction Taxable income $ 9,000 10,400 $19,400 (9,350)* $10.050 *Because she is a dependent, Lucy's standard deduction is limited to the greater of $9,350 ($9,000 earned income plus $350) or $1,100. Lucy is under age 18, so she is subject to the kiddie tax. Her net unearned income is $8,200 ($10,400 - $1,100 - $1,100), and it is taxed at 24% because her parents' $240,000 taxable income is in the 24% tax bracket. Lucy's tax is calculated as follows: $1,968 Tax on net unearned income ($8,200 x 24%) Tax on taxable income exceeding net unearned income (($10,050 - $8,200) x 10%) Total income tax 185 $2,153 pp. 1:2-24 through 1:2-26. 1:2-47 Wages Interest Adjusted gross income Standard deduction Taxable income $ 9,000 10,400 $19,400 (9,350)* $10.050 *Because she is a dependent, Lucy's standard deduction is limited to the greater of $9,350 ($9,000 earned income plus $350) or $1,100. Lucy is under age 18, so she is subject to the kiddie tax. Her net unearned income is $8,200 ($10,400 - $1,100 - $1,100), and it is taxed at 24% because her parents' $240,000 taxable income is in the 24% tax bracket. Lucy's tax is calculated as follows: $1,968 Tax on net unearned income ($8,200 x 24%) Tax on taxable income exceeding net unearned income (($10,050 - $8,200) x 10%) Total income tax 185 $2,153 pp. 1:2-24 through 1:2-26