Lucy is 17 years old and a dependent of her parents. She receives $9,000 of wages from a part-time job and $10,400 of taxable interest from bonds she inherited. (The tax year is 2019.) Read the requirement4. AmountTaxable income Tax 1: ReferenceSTANDARD DEDUCTIONFiling StatusMarried individuals filing joint returns and surviving spouses$24,400Heads of households$18,350Unmarried individuals (other than surviving spouses and heads of households)$12,200Married individuals filing separate returns$12,200Additional 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.2: ReferenceChild'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 $12,7503: ReferenceSingleIf 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 $510,300.4: RequirementsDetermine Lucy's taxable income and tax.

Lucy is 17 years below 19 years of age and hence qualified for children tax rate Wages =9000…

Answered: Lucy is 17 years old and a dependent of…

Income Tax Fundamentals 2020

38th Edition

ISBN:9780357391129

Author:WHITTENBURG

Publisher:WHITTENBURG

Chapter1: The Individual Income Tax Return

Section: Chapter Questions

Problem 13P

See similar textbooks

Related questions

Concept explainers

Question

Lucy is 17 years old and a dependent of her parents. She receives $9,000 of wages from a part-time job and $10,400 of taxable interest from bonds she inherited. (The tax year is 2019.)

Read the requirement4.

	Amount
Taxable income
Tax

1: Reference

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.

2: Reference

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

3: Reference

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.

4: Requirements

Determine Lucy's taxable income and tax.

Expert Solution

Trending now

This is a popular solution!

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Arthur Wesson, an unmarried individual who is age 68, reports taxable income of 510,000 in 2019. He records positive AMT adjustments of 80,000 and preferences of 35,000. Arthur itemizes his deductions, and his regular tax liability in 2019 is 153,694. a. What is Arthurs AMT? b. What is the total amount of Arthurs tax liability? c. Draft a letter to Arthur explaining why he must pay more than the regular income tax liability. Arthurs address is 100 Colonels Way, Conway, SC 29526.
Compute the 2019 AMT exemption for the following taxpayers. a. Bristol, who is single, reports AMTI of 650,000. b. Marley and Naila are married and file a joint tax return. Their AMTI is 1,528,000.
In 2019, Lou has a salary of $53,300 from her job. She also has interest income of $1,600 and dividend income of $ 400. Lou is single and has no dependents. During the year, Lou sold silver coins held as an investment for a $7,000 loss. Calculate the following amounts for Lou: Adjusted gross income $ ____________________ Standard deduction $ ____________________ Taxable income $ ____________________

Recommended textbooks for you

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

Income Tax Fundamentals 2020

Accounting

ISBN:

9780357391129

Author:

WHITTENBURG

Publisher:

Cengage

Individual Income Taxes

Accounting

ISBN:

9780357109731

Author:

Hoffman

Publisher:

CENGAGE LEARNING - CONSIGNMENT

SWFT Individual Income Taxes

Accounting

ISBN:

9780357391365

Author:

YOUNG

Publisher:

Cengage

CONCEPTS IN FED.TAX., 2020-W/ACCESS

Accounting

ISBN:

9780357110362

Author:

Murphy

Publisher:

CENGAGE L

SWFT Comprehensive Volume 2019

Accounting

ISBN:

9780357233306

Author:

Maloney

Publisher:

Cengage

SWFT Comprehensive Vol 2020

Accounting

ISBN:

9780357391723

Author:

Maloney

Publisher:

Cengage

SEE MORE TEXTBOOKS

Lucy is 17 years old and a dependent of her parents. She receives $9,000 of wages from a​ part-time job and $10,400 of taxable interest from bonds she inherited. ​(The tax year is 2019​.)

Lucy is 17 years old and a dependent of her parents. She receives $9,000 of wages from a part-time job and $10,400 of taxable interest from bonds she inherited. (The tax year is 2019.)