Taylor, age 16, is
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Taylor, age 16, is claimed as a dependent by her parents. For 2023, she has the following income: $5,400 wages
from a summer job, $1,820 interest from a money market account, and $1,875 interest from City of Chicago bonds.
If required, round your answers to the nearest dollar. If required, round your answers to the nearest
dollar. If an amount is zero, enter "0".
Click here to access the 2023 tax rate schedule.
a. Taylor's standard deduction for 2023 is $
Taylor's taxable income for 2023 is $
b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax.
Compute Taylor's tax liability. [Her parents file a joint return and have taxable income of $135,000 (no dividends or
capital gains).]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fd8607d06-f0c5-4d26-81b9-5bf7c5ee565c%2F9a1f8f52-6f0f-42d9-b7dc-6a4f2b4f57a6%2F0t8bq2_processed.png&w=3840&q=75)
Transcribed Image Text:Taylor, age 16, is claimed as a dependent by her parents. For 2023, she has the following income: $5,400 wages
from a summer job, $1,820 interest from a money market account, and $1,875 interest from City of Chicago bonds.
If required, round your answers to the nearest dollar. If required, round your answers to the nearest
dollar. If an amount is zero, enter "0".
Click here to access the 2023 tax rate schedule.
a. Taylor's standard deduction for 2023 is $
Taylor's taxable income for 2023 is $
b. Compute Taylor's "net unearned income" for the purpose of the kiddie tax.
Compute Taylor's tax liability. [Her parents file a joint return and have taxable income of $135,000 (no dividends or
capital gains).]
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