Question
Hello, In 2020, Mason is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married filing jointly). Mason's
Hello,
In 2020, Mason is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married filing jointly). Mason's parents provided most of his support.
What is Mason's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates for reference.
A - Mason is 17 years old at year-end and earned $16,100 from his summer job and part-time job after school. This was his only source of income.
Tax Liability _____________?
Tax Rates for Net Capital Gains and Qualified Dividends
Rate* | Taxable Income | ||||
---|---|---|---|---|---|
Married Filing Jointly | Married Filing Separately | Single | Head of Household | Trusts and Estates | |
0% | $0 - $80,000 | $0 - $40,000 | $0 - $40,000 | $0 - $53,600 | $0 - $2,650 |
15% | $80,001 - $496,600 | $40,001 - $248,300 | $40,001 - $441,450 | $53,601 - $469,050 | $2,651 - $13,150 |
20% | $496,601+ | $248,301+ | $441,451+ | $469,051+ | $13,151+ |
*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified dividends are included in taxable income last for this purpose).
2020 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 9,875 | 10% of taxable income |
$ 9,875 | $ 40,125 | $987.50 plus 12% of the excess over $9,875 |
$ 40,125 | $ 85,525 | $4,617.50 plus 22% of the excess over $40,125 |
$ 85,525 | $163,300 | $14,605.50 plus 24% of the excess over $85,525 |
$163,300 | $207,350 | $33,271.50 plus 32% of the excess over $163,300 |
$207,350 | $518,400 | $47,367.50 plus 35% of the excess over $207,350 |
$518,400 | $156,235 plus 37% of the excess over $518,400 |
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 19,750 | 10% of taxable income |
$ 19,750 | $ 80,250 | $1,975 plus 12% of the excess over $19,750 |
$ 80,250 | $171,050 | $9,235 plus 22% of the excess over $80,250 |
$171,050 | $326,600 | $29,211 plus 24% of the excess over $171,050 |
$326,600 | $414,700 | $66,543 plus 32% of the excess over $326,600 |
$414,700 | $622,050 | $94,735 plus 35% of the excess over $414,700 |
$622,050 | $167,307.50 plus 37% of the excess over $622,050 |
Schedule Z-Head of Household
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 14,100 | 10% of taxable income |
$ 14,100 | $ 53,700 | $1,410 plus 12% of the excess over $14,100 |
$ 53,700 | $ 85,500 | $6,162 plus 22% of the excess over $53,700 |
$ 85,500 | $163,300 | $13,158 plus 24% of the excess over $85,500 |
$163,300 | $207,350 | $31,830 plus 32% of the excess over $163,300 |
$207,350 | $518,400 | $45,926 plus 35% of the excess over $207,350 |
$518,400 | $154,793.50 plus 37% of the excess over $518,400 |
Schedule Y-2-Married Filing Separately
If taxable income is over: | But not over: | The tax is: |
---|---|---|
$ 0 | $ 9,875 | 10% of taxable income |
$ 9,875 | $ 40,125 | $987.50 plus 12% of the excess over $9,875 |
$ 40,125 | $ 85,525 | $4,617.50 plus 22% of the excess over $40,125 |
$ 85,525 | $163,300 | $14,605.50 plus 24% of the excess over $85,525 |
$163,300 | $207,350 | $33,271.50 plus 32% of the excess over $163,300 |
$207,350 | $311,025 | $47,367.50 plus 35% of the excess over $207,350 |
$311,025 | $83,653.75 plus 37% of the excess over $311,025 |
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