Terri, age 16, is a dependent of her parents in 2022. During the year, Terri earned $5,000 in interest…

Terri, age 16, is a dependent of her parents in 2022. During the year, Terri earned $5,000 in interest…

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Terri, age 16, is a dependent of her parents in 2022. During the year, Terri earned $5,000 in interest…
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Terri, age 16, is a dependent of her parents in 2022. During the year, Terri earned $5,000 in interest income and $3,000 from part-time
jobs.
Click here to access the 2022 tax rate schedule.
a. What is Terri’s taxable income?
X b. How much of Terri’s income is taxed at her parent’s rate?
At her rate? Single Schedule X
If taxable
income is:
Over-
$
0
10,275
41,775
89,075
170,050
215,950
0
But not
over-
20,550
83,550
178,150
340,100
431,900
647,850
$ 10,275
41,775
89,075
170,050
215,950
539,900
……… 10%
$1,027.50 +12%
4,807.50 +22%
15,213.50 +24%
34,647.50+ 32%
49,335.50+ 35%
539,900
162,718.00 +37%
Married filing jointly or Qualifying widow(er)-
Schedule Y-1
If taxable
income is:
Over-
$
But not
over-
$ 20,550
83,550
178,150
340,100
431,900
647,850
The tax is:
*********
The tax is:
2022 Tax Rate Schedules
……… 10%
$ 2,055.00 +12%
9,615.00 +22%
30,427.00 +24%
69,295.00+ 32%
98,671.00 + 35%
174,253.50 +37%
of the
amount
over-
$
0
10,275
41,775
89,075
170,050
215,950
539,900
of the
amount
over-
$
0
20,550
83,550
178,150
340,100
431,900
647,850
Head of household-Schedule Z
If taxable
income is:
Over-
$
0
If taxable
income is:
Over-
$
0
10,275
41,775
89,075
170,050
But not
over-
215,950
323,925
$ 14,650
55,900
89,050
170,050
215,950
539,900
14,650
55,900
89,050
170,050
215,950
539,900
Married filing separately-Schedule Y-2
*********
But not
over-
$ 10,275
41,775
89,075
170,050
215,950
323,925
The tax is:
*********
……… 10%
$ 1,465.00+12%
6,415.00 +22%
13,708.00 +24%
33,148.00+32%
47,836.00+ 35%
161,218.50 +37%
The tax is:
……… 10%
$ 1,027.50 +12%
4,807.50 +22%
15,213.50 +24%
34,647.50+32%
49,335.50 +35%
87,126.75 +37%
of the
amount
over-
$ 0
14,650
55,900
89,050
170,050
215,950
539,900
of the
amount
over-
$
0
10,275
41,775
89,075
170,050
215,950
323,925

Expert Answer:

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a Terri s taxable income is 8 000 which is the total of her interest income 5 000 and earnings from
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