Question

Estates and Trusts Required information [The following information applies to the questions displayed below] In 2019, Sheryl is claimed as a dependent on her parents' tax return. Sheryl did not provide more than half her own support. If taxable income is But not The tax is: over: What is Sheryl'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. (Leave no answer blank. Enter zero if applicable.) over: a. She received $6,100 from a part-time job. This was her only source of income. She is 16 years old at year-end. $ 0 $ 2.600 10% of taxable income $ 2,600 Tax liability b. She received $6,100 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 16 years old at year-end. $ 9.300 $260 plus 24% of the excess over $2,600 $ 9,300 Tax liability c. She received $6,100 of interest income from corporate bonds she received several years ago. This is her only source of income. She is 20 years old at year-end and is a full-time student. $12,750 $1,868 plus 35% of the excess over $9.300 $12,750 Tax liability d. She received $6,100 of qualified dividend income. This is her only source of income. She is 16 years old at year-end. (Round your final answer to 2 decimal places.) $3,075.50 plus 37% of the excess over $12,750 Tax liability

2019 Tax Rate Schedules

Individuals

Schedule X-Single

If taxable income is over:	But not over:	The tax is:
$           0	$    9,700	10% of taxable income
$    9,700	$ 39,475	$970 plus 12% of the excess over $9,700
$ 39,475	$ 84,200	$4,543 plus 22% of the excess over $39,475
$ 84,200	$160,725	$14,382.50 plus 24% of the excess over $84,200
$160,725	$204,100	$32,748.50 plus 32% of the excess over $160,725
$204,100	$510,300	$46,628.50 plus 35% of the excess over $204,100
$510,300	—	$153,798.50 plus 37% of the excess over $510,300

Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)

If taxable income is over:	But not over:	The tax is:
$           0	$ 19,400	10% of taxable income
$ 19,400	$ 78,950	$1,940 plus 12% of the excess over $19,400
$ 78,950	$168,400	$9,086 plus 22% of the excess over $78,950
$168,400	$321,450	$28,765 plus 24% of the excess over $168,400
$321,450	$408,200	$65,497 plus 32% of the excess over $321,450
$408,200	$612,350	$93,257 plus 35% of the excess over $408,200
$612,350	—	$164,709.50 plus 37% of the excess over $612,350

Schedule Z-Head of Household

If taxable income is over:	But not over:	The tax is:
$           0	$ 13,850	10% of taxable income
$ 13,850	$ 52,850	$1,385 plus 12% of the excess over $13,850
$ 52,850	$ 84,200	$6,065 plus 22% of the excess over $52,850
$ 84,200	$160,700	$12,962 plus 24% of the excess over $84,200
$160,700	$204,100	$31,322 plus 32% of the excess over $160,700
$204,100	$510,300	$45,210 plus 35% of the excess over $204,100
$510,300	—	$152,380 plus 37% of the excess over $510,300

Schedule Y-2-Married Filing Separately

If taxable income is over:	But not over:	The tax is:
$           0	$    9,700	10% of taxable income
$    9,700	$ 39,475	$970 plus 12% of the excess over $9,700
$ 39,475	$ 84,200	$4,543 plus 22% of the excess over $39,475
$ 84,200	$160,725	$14,382.50 plus 24% of the excess over $84,200
$160,725	$204,100	$32,748.50 plus 32% of the excess over $160,725
$204,100	$306,175	$46,628.50 plus 35% of the excess over $204,100
$306,175	—	$82,354.75 plus 37% of the excess over $306,175

Answer 1

Part A

Description	Amount	Explanation
(1)Gross income/AGI	6100	$6100 in wages All earned income
(2)Standard deduction for dependent on another tax return	(6450)	Earned income + $350
(3)Taxable income	0	(1) + (2)
Total tax	0

Part B

Description	Amount	Explanation
(1)Gross income/AGI (All unearned income)	6100	$6100 interest income (All unearned income)
(2) Minimum standard deduction	(1100)	Minimum for taxpayer claimed as dependent on another return
(3) $350 plus earned income	350	$350 + 0 earned income
(4)Standard deduction for dependent on another tax return	1100	Greater of (2) and (3)
(5)Taxable income	5000	(1) − (4)
(6) Gross unearned income minus $2,200	3900	(1) − $2,200
(7)Net unearned income	3900	Lesser of (5) or (6)
(8)Kiddie tax	572	[($2600 x 10%) + ((7) - $2600) × 24%)], trust and estate tax rate schedule)
(9)Taxable income taxed at Sheryl’s tax rate	1100	(5) − (7)
(10)Sheryl’s income tax rate	10%	Single filing status
(11)Tax on taxable income using Sheryl’s rate	110	(9) × (10)
Total tax	$682	(8) + (11)

Part C

Description	Amount	Explanation
(1)Gross income/AGI (All unearned income)	6100	$6100 interest income (All unearned income)
(2) Minimum standard deduction	(1100)	Minimum for taxpayer claimed as dependent on another return
(3) $350 plus earned income	350	$350 + 0 earned income
(4)Standard deduction for dependent on another tax return	1100	Greater of (2) and (3)
(5)Taxable income	5000	(1) − (4)
(6) Gross unearned income minus $2,200	3900	(1) − $2,200
(7)Net unearned income	3900	Lesser of (5) or (6)
(8)Kiddie tax	572	[($2600 x 10%) + ((7) - $2600) × 24%)], trust and estate tax rate schedule)
(9)Taxable income taxed at Sheryl’s tax rate	1100	(5) − (7)
(10)Sheryl’s income tax rate	10%	Single filing status
(11)Tax on taxable income using Sheryl’s rate	110	(9) × (10)
Total tax	$682	(8) + (11)

Part D

Description	Amount	Explanation
(1)Gross income/AGI (All unearned income)	6100	$6100 dividend income (All unearned income)
(2) Minimum standard deduction	1100	Minimum for taxpayer claimed as dependent on another return
(3) $350 plus earned income	350	$350 + 0 earned income
(4)Standard deduction for dependent on another tax return	1100	Greater of (2) and (3)
(5)Taxable income	5000	(1) – (4)
(6) Gross unearned income minus $2,100	3900	(1) − $2,200
(7)Net unearned income	3900	Lesser of (5) or (6)
(8) Parents’ preferential rate	15%
(9)Kiddie tax	585	(7) x (8)
(10)Taxable income taxed at Sheryl’s tax rate	1100	(5) − (7)
(11) Sheryl’s preferential rate	0%
(12) Tax on income using Sheryl’s preferential rate	0	(11) × (12)
Total tax	$585	(9) + (12)