Question
Taylor, age 18, is claimed as a dependent by her parents. For 2016, she has the following income: $3,000 wages from a summer job, $1,625
Taylor, age 18, is claimed as a dependent by her parents. For 2016, she has the following income: $3,000 wages from a summer job, $1,625 interest from a money market account, and $1,875 interest from City of Boston bonds. If required, round your answers to the nearest dollar. If an amount is zero, enter "0".
a. Taylor's standard deduction for 2016 is $ ?.
Taylor's personal exemption for 2016 is $ ?.
Taylor's taxable income for 2016 is $ ?.
b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax. $?
Assume that Taylor's tax rate is 10% and her parents' tax rate is 28%. If Taylor's parents file a joint return and have taxable income of $130,000, then Taylor's tax is $? .
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