Problem: Mary is 13. She receives annual interest payments of $4000. What is her taxable income in 2011? Her parents claim her as a dependent. What is her parent's 2011 taxable income?
John is 16. In 2011, he earned $6000 working a part-time job and received $5000 of interest income. His parents claim him as a dependent and they do not have any qualified dividends or capital gains. The parents' taxable income is $70,000 and they paid $9,750 on their taxable income. (I realize you do not have all of the facts. You can make up a number for the parent's tax on the revised taxable income.) What is John's total tax?