Question
Required information Skip to question [The following information applies to the questions displayed below.] Lacy is a single taxpayer. In 2020, her taxable income is
Required information
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[The following information applies to the questions displayed below.] Lacy is a single taxpayer. In 2020, her taxable income is $45,000. What is her tax liability in each of the following alternative situations? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Do not round intermediate calculations.)
b. Her $45,000 of taxable income includes $4,000 of qualified dividends.
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).
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