Question

Heidi is 17 years old and a dependent of her parents. She receives $8,700 of wages from a part-time job and $9,200 of taxable interest from bonds she inherited.

FIND OUT

-taxable income and

-tax.

STANDARD DEDUCTION

Filing Status

Married individuals filing joint returns and surviving spouses

$24,400

Heads of households

$18,350

Unmarried individuals (other than surviving spouses and heads of households)

$12,200

Married individuals filing separate returns

$12,200

Additional standard deduction for the aged and the blind; Individual who is married and surviving spouses

$1,300*

Additional standard deduction for the aged and the blind; Individual who is unmarried and not a surviving spouse

$1,650*

Taxpayer claimed as dependent on another taxpayer’s return: Greater of (1) earned income plus $350 or (2) $1,100.

* These amounts are $2,600 and $3,300, respectively, for a taxpayer who is both aged and blind.

Child's tax rate brackets:

10% tax rate: Portion of taxable income not over ETI plus $2,600

24% tax rate: Portion of taxable income over ETI plus $2,600 but not over ETI plus $9,300

35% tax rate: Portion of taxable come over ETI plus $9,300 but not over ETI plus $12,750

37% tax rate: Portion of taxable income over ETI plus $12,750

Single

If taxable income is:

The tax is:

Not over $9,700. . . . . . . . . . . . . . . . . . .

10% of taxable income.

Over $9,700 but not over $39,475. . . .

$970.00 + 12% of the excess over $9,700.

Over $39,475 but not over $84,200. . .

$4,543.00 + 22% of the excess over $39,475.

Over $84,200 but not over $160,725. .

$14,382.50 + 24% of the excess over $84,200.

Over $160,725 but not over $204,100

$32,748.50 + 32% of the excess over $160,725.

Over $204,100 but not over $510,300

$46,628.50 + 35% of the excess over $204,100.

Over $510,300. . . . . . . . . . . . . . . . . .

$153,798.50 + 37% of the excess over $510,300.

Answer 1

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