Question

Sallyann H 14th has unearned income Of 8540 or parents have decided to declare Sally and his income on your tax return using the kitty tax the tax bill for Sally Ann’s income is

Answer 1

Answer:-

2018 Trust Tax Brackets and Rates on Ordinary Income	%
$0 to $2,550	10
$2,551 to $9,150	24
$9,151 to $12,500	35
over $12,500	37

On $ 8540 the tax would be $255 on the first $2,550 and $ 1437.60 on the remaining $ 5990. So the tax would be $255 + $1437.6 = $1692.6

Net unearned income:—

(A) In general The term “net unearned income” means the excess of—

(i) The portion of the adjusted gross income for the taxable year which is not attributable to earned income (as defined in section 911(d)(2)), over

(ii) the sum of—

(a) The amount in effect for the taxable year under section 63(c)(5)(A) (relating to limitation on standard deduction in the case of certain dependents), plus

(b) The greater of the amount described in subclause (I) or, if the child itemizes his deductions for the taxable year, the amount of the itemized deductions allowed by this chapter for the taxable year which are directly connected with the production of the portion of adjusted gross income referred to in clause (i).