Cindy, an 18-year-old full-time student, has $5,000 interest income from a trust established by her grandparents. Cindy also earned $6,000 working at a part-time job. She lives at home with her parents and has no itemized deductions.
a. What is Cindy’s taxable income and how much income tax does she owe for 2018?
b. How would your answers change if Cindy were age 24?
c. How much tax would be saved if she were age 24?