Question
Heidi is 17 years old and a dependent of her parents. She receives $8,700 of wages from a part-time job and $9,200 of taxable interest
Heidi is 17 years old and a dependent of her parents. She receives $8,700 of wages from a part-time job and $9,200 of taxable interest from bonds she inherited.
FIND OUT
-taxable income and
-tax.
STANDARD DEDUCTION
Filing Status
Married individuals filing joint returns and surviving spouses
$24,400
Heads of households
$18,350
Unmarried individuals (other than surviving spouses and heads of households)
$12,200
Married individuals filing separate returns
$12,200
Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses
$1,300*
Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse
$1,650*
Taxpayer claimed as dependent on another taxpayers return: Greater of (1) earned income plus $350 or (2) $1,100.
* These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind.
Child's tax rate brackets:
10% tax rate: Portion of taxable income not over ETI plus $2,600
24% tax rate: Portion of taxable income over ETI plus $2,600 but not over ETI plus $9,300
35% tax rate: Portion of taxable come over ETI plus $9,300 but not over ETI plus $12,750
37% tax rate: Portion of taxable income over ETI plus $12,750
Single
If taxable income is:
The tax is:
Not over $9,700. . . . . . . . . . . . . . . . . . .
10% of taxable income.
Over $9,700 but not over $39,475. . . .
$970.00 + 12% of the excess over $9,700.
Over $39,475 but not over $84,200. . .
$4,543.00 + 22% of the excess over $39,475.
Over $84,200 but not over $160,725. .
$14,382.50 + 24% of the excess over $84,200.
Over $160,725 but not over $204,100
$32,748.50 + 32% of the excess over $160,725.
Over $204,100 but not over $510,300
$46,628.50 + 35% of the excess over $204,100.
Over $510,300. . . . . . . . . . . . . . . . . .
$153,798.50 + 37% of the excess over $510,300.
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