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The 0.9 percent Medicare tax applies to: a. Tax exempt income b. IRA distributions c. Earned income d. Gain on the sale of a principal

The 0.9 percent Medicare tax applies to:

a.

Tax exempt income

b.

IRA distributions

c.

Earned income

d.

Gain on the sale of a principal residence

The 3.8 percent ACA Medicare tax does not apply to:

a.

Wages

b.

Interest

c.

Capital gains

d.

Dividends

Tom, age 13, is claimed as a dependent by his parents. Tom has unearned income of $3,400 and $300 of income from mowing lawns in the neighborhood. If the first $2,600 of Tom's net unearned income is taxed at 10%, what is Toms 2019 income tax liability?

a.

None of these

b.

$260

c.

$370

d.

$0

e.

$459

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