Problem 3-46 (LO. 1, 3, 7) Paige, age 17, is a dependent of her parents. Her parents report taxable income of $120,000 on their joint return (no qualified dividends or capital gains). During 2023, Paige earned $3,900 pet sitting and $4,500 in interest on a savings account. Click here to access the 2023 tax rate schedule. What are Paige's taxable income and tax liability for 2023? a. Paige's total taxable income is $ b. Paige's tax liability is $ Feedback Check My Work 4,100✔ 335 X. To reduce the tax savings that result from shifting income from parents to children, the net unearned income of certain children is taxed as if it were the parents' income. This provision, commonly referred to as 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 $2,500.
Problem 3-46 (LO. 1, 3, 7) Paige, age 17, is a dependent of her parents. Her parents report taxable income of $120,000 on their joint return (no qualified dividends or capital gains). During 2023, Paige earned $3,900 pet sitting and $4,500 in interest on a savings account. Click here to access the 2023 tax rate schedule. What are Paige's taxable income and tax liability for 2023? a. Paige's total taxable income is $ b. Paige's tax liability is $ Feedback Check My Work 4,100✔ 335 X. To reduce the tax savings that result from shifting income from parents to children, the net unearned income of certain children is taxed as if it were the parents' income. This provision, commonly referred to as 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 $2,500.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Problem 3-46 (LO. 1, 3, 7)
Paige, age 17, is a dependent of her parents. Her parents report taxable income of $120,000 on their joint return (no qualified dividends or
capital gains). During 2023, Paige earned $3,900 pet sitting and $4,500 in interest on a savings account.
Click here to access the 2023 tax rate schedule.
What are Paige's taxable income and tax liability for 2023?
a. Paige's total taxable income is $
b. Paige's tax liability is $
Feedback
335
4,100 ✔
x.
▼ Check My Work
To reduce the tax savings that result from shifting income from parents to children, the net unearned income of certain children is taxed as if it
were the parents' income. This provision, commonly referred to as 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 $2,500.
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