In 2022, Carson is claimed as a dependent on his parents' tax return. His parents report taxable income of $200,000 (married filing jointly). 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 for reference)Required: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 Rates for Net Capital Gains and Qualified DividendsMarried Filing Jointly$0-$83,350Rate*Trusts and EstatesSingle$0-$41,6750%$0-$2,800$2,801 - $13,70015%$41,676 - $459,750$459,751+$517,201+$13,701+20%*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified di$83,351 $517,200Married Filing SeparatelySO - $41,675Taxable Income$41,676-$258,600$258,601+Head of Household$0-$55,800$55,801 - $488,500$488,501+ 2022 Tax Rate SchedulesIndividualsSchedule X-SingleIf taxable income is over: But not over:S0$ 10,275$ 41,775$ 89,075$ 170,050$215,950$ 539,900$ 0$ 20,550$ 83,550$ 178,150$ 340,100$ 431,900$ 647,850Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)If taxable income is over: But not over:S 0$ 14,650$ 55,900$ 89,050$ 170,050$ 215,950$ 539,900$ 10,275$ 41,775$ 89,075$ 170,050$215,950$539,900Schedule Z-Head of HouseholdIf taxable income is over: But not over:-$ 0$ 10,275$ 41,775$ 89,075$ 170,050$ 215.950$ 20,550$ 83,550$ 178,150$340,100$431,900$ 647,850$ 14,650$ 55,900$ 89,050$ 170,050$215,950$539,900The tax is:10% of taxable income$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$49,335.50 plus 35% of the excess over $215,950$162,718 plus 37% of the excess over $539,900Schedule Y-2-Married Filing SeparatelyIf taxable income is over: But not over:The tax is:10% of taxable income$2,055 plus 12% of the excess over $20,550$9,615 plus 22% of the excess over $83,550$30,427 plus 24% of the excess over $178,150$69,295 plus 32% of the excess over $340,100$98,671 plus 35% of the excess over $431,900$174,253.50 plus 37% of the excess over $647,850The tax is:10% of taxable income$1,465 plus 12% of the excess over $14,650$6,415 plus 22% of the excess over $55,900$13,708 plus 24% of the excess over $89,050$33,148 plus 32% of the excess over $170,050$47,836 plus 35% of the excess over $215,950$161,218.50 plus 37% of the excess over $539,900The tax is:10% of taxable income$ 10,275$ 41,775$ 89,075$ 170,050$215,950$1,027.50 plus 12% of the excess over $10,275$4,807.50 plus 22% of the excess over $41,775$15,213.50 plus 24% of the excess over $89,075$34,647.50 plus 32% of the excess over $170,050$ 323.925 $49.335.50 plus 35% of the excess over $215.950

Earned Income $14,000.00 2 Unearned Income $5,000.00…

Answered: In 2022

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 12CE

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Required:

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 Rates for Net Capital Gains and Qualified Dividends
Married Filing Jointly
$0-$83,350
Rate*
Trusts and Estates
Single
$0-$41,675
0%
$0-$2,800
$2,801 - $13,700
15%
$41,676 - $459,750
$459,751+
$517,201+
$13,701+
20%
*This rate applies to the net capital gains and qualified dividends that fall within the range of taxable income specified in the table (net capital gains and qualified di
$83,351 $517,200
Married Filing Separately
SO - $41,675
Taxable Income
$41,676-$258,600
$258,601+
Head of Household
$0-$55,800
$55,801 - $488,500
$488,501+

2022 Tax Rate Schedules
Individuals
Schedule X-Single
If taxable income is over: But not over:
S
0
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$ 539,900
$ 0
$ 20,550
$ 83,550
$ 178,150
$ 340,100
$ 431,900
$ 647,850
Schedule Y-1-Married Filing Jointly or Qualifying Widow(er)
If taxable income is over: But not over:
S 0
$ 14,650
$ 55,900
$ 89,050
$ 170,050
$ 215,950
$ 539,900
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$539,900
Schedule Z-Head of Household
If taxable income is over: But not over:
-
$ 0
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$ 215.950
$ 20,550
$ 83,550
$ 178,150
$340,100
$431,900
$ 647,850
$ 14,650
$ 55,900
$ 89,050
$ 170,050
$215,950
$539,900
The tax is:
10% of taxable income
$1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$49,335.50 plus 35% of the excess over $215,950
$162,718 plus 37% of the excess over $539,900
Schedule Y-2-Married Filing Separately
If taxable income is over: But not over:
The tax is:
10% of taxable income
$2,055 plus 12% of the excess over $20,550
$9,615 plus 22% of the excess over $83,550
$30,427 plus 24% of the excess over $178,150
$69,295 plus 32% of the excess over $340,100
$98,671 plus 35% of the excess over $431,900
$174,253.50 plus 37% of the excess over $647,850
The tax is:
10% of taxable income
$1,465 plus 12% of the excess over $14,650
$6,415 plus 22% of the excess over $55,900
$13,708 plus 24% of the excess over $89,050
$33,148 plus 32% of the excess over $170,050
$47,836 plus 35% of the excess over $215,950
$161,218.50 plus 37% of the excess over $539,900
The tax is:
10% of taxable income
$ 10,275
$ 41,775
$ 89,075
$ 170,050
$215,950
$1,027.50 plus 12% of the excess over $10,275
$4,807.50 plus 22% of the excess over $41,775
$15,213.50 plus 24% of the excess over $89,075
$34,647.50 plus 32% of the excess over $170,050
$ 323.925 $49.335.50 plus 35% of the excess over $215.950

Definition Definition Tax imposed by the government on the "gain" or increase in the value of an asset at the time of its sale by the owner. Capital gain is computed based on the purchase price and sale price of the asset. If the sale price of the asset is more than the purchase price, there is a gain on the sale of asset. A tax is imposed on such gain in accordance with the applicable tax rates at the time of sale.

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