What is sheryls tax liability for the year


In 2013, Sheryl is claimed as a dependent on her parent's tax return. Her parents' ordinary income marginal tax rate is 35 percent. Sheryl did not provide more than half her own support. What is Sheryl's tax liability for the year in each of the following alternative circumstances?

a. She received $7,000 from a part-time job. This was her only source of income. She is 16 years old at year-end.

b. She received $7,000 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.

c. She received $7,000 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.

d. She received $7,000 of qualified dividend income. This is her only source of income. She is 16 years old at year-end.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is sheryls tax liability for the year
Reference No:- TGS0672801

Expected delivery within 24 Hours