parents. Her only gross income is the $14,000 of interest. Begin by computing the amount that Ralph and Tina would pay in tax if they owned the bonds. Ralph and Tina's tax if reporting the interest income would be Now compute the tax that Pam owes on the interest income. Pam's total income tax if reporting the interest income is determine the amount of tax the family saves in the current year because Pam owns the bonds rather than Ralph and Tina. mount of tax the family saves because Pam owns the bonds rather than Ralph and Tina is If Pam owned the bonds, her income tax would increase by The amount of tax the family saves because Pam owns the bonds rather than Ralph and Tina is STANDARD DEDUCTION parents. Her only gross income is the $14,000 of interest. Begin by computing the amount that Ralph and Tina would pay in tax if they owned the bonds. Ralph and Tina's tax if reporting the interest income would be Now compute the tax that Pam owes on the interest income. Pam's total income tax if reporting the interest income is determine the amount of tax the family saves in the current year because Pam owns the bonds rather than Ralph and Tina. mount of tax the family saves because Pam owns the bonds rather than Ralph and Tina is If Pam owned the bonds, her income tax would increase by The amount of tax the family saves because Pam owns the bonds rather than Ralph and Tina is STANDARD DEDUCTION