Question

During 2012, Jasmine (age 12) received $2,400 from a corporate bond. She also received $600 from a savings account established for her by her parents. Jasmine lives with her parents and she is their dependent. Assuming her parents' marginal tax rate is 28%, what is Jasmine's gross tax liability?$0$95$308$403

Answer 1

The answer to the following question is $403

Step-by-step explanation:

The taxable income of Jasmine is - $2,050 ( $3,000 minus $950 SD(standard deduction)). Her exact unearned income is - $1,100 ($3,000 gross income which is unearned minus $1,900 ) . This is taxed at 28 % ( $308 tax ) . The remaining $950 of her taxable income ( $2 , 050 minus $1 , 100 taxed at parents ' rate ) is taxed at 10 % ( $95 tax ) . Total tax is $403 ( $308 - 95 ) .