In 2013, Carson is claimed as a dependent on his parent's tax return. His parents' ordinary income marginal tax rate is 28 percent. Carson's parents provided most of his support.
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What is Carson's tax liability for the year in each of the following alternative circumstances?
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| a. |
Carson is 17 years old at year-end and earned $12,000 from his summer job and part-time job after school. This was his only source of income.
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| b. |
Carson is 23 years old at year-end. He is a full-time student and earned $12,000 from his summer internship and part-time job. He also received $5,000 of qualified dividend income.
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