Question

In 2017, 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. What is Carson's tax liability if he is 17, earned $12,700 from his summer job and part-time job after school and this was his only source of income?

Answer 1

Carson's tax liability would be 15% of $12,700, which is $1,905.

Step-by-step explanation:

Carson's tax liability can be determined by calculating the tax on his income using the marginal tax rates. The marginal tax rates for a single taxpayer range from 10% to 35% depending on income. Since Carson's parents claimed him as a dependent and his parents' marginal tax rate is 28%, Carson's tax liability would be 28% of his income.

To calculate Carson's tax liability, we need to find out which tax bracket his income falls into. For 2017, the tax bracket for income between $9,325 and $37,950 has a marginal tax rate of 15%. Since Carson earned $12,700, his income falls within this bracket. Therefore, his tax liability would be 15% of $12,700, which is $1,905.

It's important to note that this is just an estimate of Carson's tax liability, as there may be other factors that could affect his tax situation. It's always a good idea to consult a tax professional for a more accurate calculation.