In: Accounting
In 2018, Carson is claimed as a dependent on his parent's tax return. 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, Estates and Trusts for
reference. for reference.
a. Carson is 17 years old at year-end and earned $14,000 from his summer job and part-time job after school. This was his only source of income.
Tax Liability?
b. Carson is 23 years old at year-end. He is a full-time student and earned $14,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.
Tax Liability?