n 2022, Carson is claimed as a dependent or
Chapter4: Managing Income Taxes
Section: Chapter Questions
Problem 3DTM
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Transcribed Image Text:Individuals
Schedule X-Single
If taxable income is over: But not over:
$
0
$ 10,275
$ 10,275
$ 41,775
$ 89,075
$ 41,775
$ 89,075
$170,050
$ 215,950
$ 539,900
$ 170,050
$215,950
$ 539,900
Show Transcribed Text
Tax Rates for Net Capital Gains and Qualified Dividends
Rate*
0%
15%
20%
Married Filing Jointly
$0-$83,350
$83,351 $517,200
$517,201+
Married Filing Separately
$0-$41,675
$41,676 - $258,600
$258,601+
10% of taxable income
$1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$49,335.50 plus 35% of the excess over $215,950
$162,718 plus 37% of the excess over $539,900
S
Taxable Income
Single
$0-$41,675
$41,676 $459,750
The tax is:
$459,751+
Head of Household
$0-$55,800
$55,801 $488,500
$488,501+
Trusts and Estates
$0-$2,800
$2,801 $13,700
$13,701+
Transcribed Image Text:In 2022, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married filing
jointly). Carson's parents provided most of his support.
What is Carson's tax liability for the year in each of the following alternative circumstances? Use Tax Rate Schedule, Dividends and
Capital Gains Tax Rates for reference.
Note: Do not round intermediate calculations. Round your answer to 2 decimal places.
Required:
a. Carson is 17 years old at year-end and earned $15,350 from his summer job and part-time job after school. This was his only source
of income.
b. Carson is 23 years old at year-end. He is a full-time student and earned $15,350 from his summer internship and part-time job. He
also received $5,940 of qualified dividend income.
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