Jamie is single. In 2019, she reported $109,000 of taxable income, including a long-term capital gain of $5,900. What is her gross tax liability, rounded to the nearest whole dollar amount? (Use the tax rate schedules, long-term capital gains tax brackets) Skipped eBook $16,350 $20,389 $19,804 $19,054 2019 Tax Rate Schedules Individuals Schedule X-Single If taxable income is over: But not over: The tax is: $ 0 $ 9,700 10% of taxable income $ 9,700 $ 39,475 $970 plus 12% of the excess over $9,700 $ 39,475 $ 84,200 $4,543 plus 22% of the excess over $39,475 $ 84,200 $160,725 $14,382.50 plus 24% of the excess over $84,200 $160,725 $204,100 $32,748.50 plus 32% of the excess over $160,725 $204,100 $510,300 $46,628.50 plus 35% of the excess over $204,100 $46,628.50 plus 35 $510,300 $153,798.50 plus 37% of the excess over $510,300 Tax Rates for Net Capital Gains and Qualified Dividends I Rate* | Married Filing Jointly 0% $0 - $78,750 15% $78,751 - $488,850 20% $488,851+ Married Filing Separately $0 - $39,375 $39,376 - $244,425 $244,426+ Taxable Income Single $0 - $39,375 $39,376 - $434,550 $434,551+ Head of Household $0 - $52,750 $52,751 - $461,700 $461,701+ Trusts and Estates $0 - $2,650 $2,651 - $12,950 $12,951+ *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). During 2019, Montoya (age 15) received $2,370 from a corporate bond. He also received $770 from a savings account established for him by his parents. Montoya lives with his parents and he is their dependent. What is Montoya's taxable income? eBook Multiple Choice o o $2,370 $3,140 $2,040 Carolyn has an AGI of $39,700 (all from earned income) and two qualifying children and is filing as a head of household. What amount of earned income credit is she entitled to? Exhibit 8-10) Skipped Multiple Choice eBook $0 $1,475 $3,884 $4,353 EXHIBIT 8-10 2019 Earned Income Credit Table (3) (1) Maximum Earned Income Eligible for Credit Qualifying Children L 1 2 3+ T L $ 6,920 10,370 14,570 14,570 | No Credit When AGI (or earned Maximum Credit Phase-Out for AGI (5) income if greater) Equals or (2) Credit (or earned income if Phase-Out Exceeds This Amount (4) + Credit % (1) x (2) greater) Over This Amount Percentage [(3)/(5)] Married taxpayers filing joint returns 7.65% $ 529 $14,450 7.65% $21,370 34 3, 526 2 4,820 15.98 46,884 40 5,828 24,820 | 21.06 52,493 45 6,557 24,820 21.06 55,952 All taxpayers except married taxpayers filing joint returns 7.65% $ 529 $8,650 7.65% | $15,570 34 3,526 19,030 15.98 41,094 40 5,828 19,030 21.06 46,703 45 6,557 19,030 21.06 50,162 L | 0 $ 6,920 1 10,370 2T 14,570 3+ 14,570 Source: Rev. Proc. 2018-57
