Question

In 2019, Sheryl is claimed as a dependent on her parents' tax return. 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? Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference

Answer 1

Total tax ( Sheryl ) = $802

Step-by-step explanation:

Tax status of Sheryl = Single

The rates to be used are

• Tax rate = 10% for single taxpayers with income between $0 through $9700
• Tax for income from estates that is between $2600 through $9300 will be $260 + 24% of excess over $2600

kiddie tax is applicable on earned income above $2200 ( defined by IRS )

attached below is a detailed table