Tax Drill - Computation of Kiddie Tax In 2021, Simon, age 12, has interest income of $900 and dividend income of $4,000. He has no investment expenses. Determine Simon's net unearned income and total tax liability. Click here to access the 2021 tax rate schedule. If required, round the tax liability the nearest dollar. Net unearned income is s 2,700. Simon's total tax is 277 x Feedback Check My Work To reduce the tax savings that result from shifting income from parents to children, the net unearned income (commonly called investment income) of certain children is taxed differently. The kiddie tax applies to any child who is under age 19 (or under age 24 if a full-time student) and has unearned income of more than $2,200. SingleSchedule X If taxable income is: But not Over- over- 2021 Tax Rate Schedules Head of household Schedule Z of the If taxable amount income is: But not Over- over- The tax is: of the amount The tax is: over- over- $ 0 $ 9,950 ......... 10% $ 0 $ 0 9,950 40,525 $ 995.00 + 12% 9,950 14,200 54,200 $ 0 $ 14,200 ......... 10% 14,200 54,200 $ 1,420.00 + 12% 54,200 86,350 6,220.00 + 22% 86,350 164,900 13,293.00 + 24% 164,900 209,400 32,145.00 + 32% 209,400 523,600 46,385.00 + 35% 523,600 156,355.00 + 37% Married filing separatelySchedule Y-2 86,350 164,900 209,400 523,600 40,525 86,375 4,664.00 + 22% 40,525 86,375 164,925 14,751.00 + 24% 86,375 164,925 209,425 33,603.00 + 32% 164,925 209,425 523,600 47,843.00 + 35% 209,425 523,600 157,804.25 + 37% 523,600 Married filing jointly or Qualifying widow(er) - Schedule Y-1 If taxable of the income is: But not amount Over- over- The tax is: over- $ 0 $ 19,900 .........10% $ 0 19,900 81,050 $ 1,990.00 + 12% 19,900 81,050 172,750 9,328.00 + 22% 81,050 172,750 329,850 29,502.00 + 24% 172,750 329,850 418,850 67,206.00 + 32% 329,850 418,850 628,300 95,686.00 + 35% 418,850 628,300 168,993.50 + 37% 628,300 If taxable income is: Over- of the amount But not over- The tax is: over- $ 0 $ 9,950 .........10% $ 0 9,950 40,525 $ 995.00 + 12% 9,950 40,525 86,375 40,525 86,375 86,375 4,664.00 + 22% 14,751.00 + 24% 33,603.00 + 32% 164,925 209,425 164,925 164,925 209,425 314,150 47,843.00 + 35% 209,425 314,150 314,150 84,496.75 + 37% Income Tax RatesEstates and Trusts (2020 and 2021) Tax Year 2020 Taxable income The Tax is: Over- $ 0 2,600 9,450 12,950 But not Over- $ 2,600 9,450 12,950 10% $ 260.00 + 24% 1,904.00 + 35% 3,129.00 + 37% of the Amount Over- $ 0 2,600 9,450 12,950 Tax Year 2021 Taxable income The Tax Is: But not Over- Of the Amount Over- Over- $ 0 2,650 9,550 13,050 $ 2,650 9,550 13,050 10% $ 265.00+ 24% 1,921.00 + 35% 3,146.00 + 37% $ 0 2,650 9,550 13,050