Question

1. Richard and Christine McCarthy have a 19-year-old son (born 10/2/99; Social Security number 555-55-1212), Jack, who is a full-time student at the University of Key West. Years ago, the McCarthys shifted a significant amount of investments into Jack's name. In 2018, Jack received Forms 1099-INT and 1099-DIV that reported the following:

Tandy Corporation Bonds interest $11,300
Tandy Corporation ordinary dividends 3,400
​The dividends are not qualified dividends. In addition, Jack works part-time as a waiter in an upscale seafood restaurant in Miami, FL. His 2018 Form W-2 reported:
Wage $12,800
Federal withholding 1,080
In spite of his fairly large income, the McCarthys provide over 50% of his support and claim Jack as a dependent in 2018. Jack's mailing address is 100 Duval Street, Apt. #B12, Key West, FL 33040. Richard's Social Security number is 100-10-9090. Use Form 1040, Schedule B, Form 8615, and the Tax Computation Worksheet from the Form 8615 instructions to compute Jack's 2018 income tax.

Answer 1

To compute Jack's 2018 income tax, use Form 1040, Schedule B, Form 8615, and the Tax Computation Worksheet from the Form 8615 instructions. Calculate Jack's adjusted gross income, determine his taxable income, and use the Tax Computation Worksheet to calculate his income tax.

Step-by-step explanation:

To compute Jack's 2018 income tax, you will need to use Form 1040, Schedule B, Form 8615, and the Tax Computation Worksheet from the Form 8615 instructions. First, you will need to calculate Jack's adjusted gross income, which includes his wages, interest income, and dividends. Then, you can determine his taxable income by subtracting his deductions and exemptions from his adjusted gross income. Finally, you can use the Tax Computation Worksheet to calculate his income tax based on his taxable income and filing status.