Taylor, age 18, is claimed as a dependent by her parents. For 2012, she records the following income:
$4,000 wages from a summer job,
$1,800 interest from a money market account,
and $2,000 interest from City of Boston bonds.
Please answer the following:
A. What is Taylors taxable income for 2012?
B. What is Taylors tax for 2012? (Her parents file a joint return and have taxable income of $130,000 [no dividends or capital gains].)