Explore BrainMass

Explore BrainMass

    Kiddie Tax

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    Debbie is 24 years old and a dependent of her parents. She earns $4,200 working part-time and receives $2,200 interest on savings. She saves both the salary and interest. What is her taxable income? Would her taxable income or tax be different if Debbie were 16 years old?

    © BrainMass Inc. brainmass.com June 4, 2020, 1:05 am ad1c9bdddf
    https://brainmass.com/business/accounting/kiddie-tax-378056

    Solution Preview

    Yes, she still has to file because she has met the first qualification below for those who have to file taxes (the first one and the third one). Her taxable income, therefore, is $6400.

    The ...

    Solution Summary

    The solution determines the taxable income.

    $2.19

    ADVERTISEMENT