Candace is claimed as a dependent on her parent's tax return (assume her parents have a 24% marginal tax rate). In 2023, Candace received $5,000 of interest income from corporate bonds she obtained several years ago. This is her only source of income. She is 15 years old at year-end. What is her gross tax liability? (Use Tax Rate Schedule, Standard deduction.)
*For individuals claimed as a dependent on another return, the 2023 standard deduction is the greater of (1) $1,250 or (2) $400 plus earned income not to exceed the standard deduction amount of those who are not dependents.
EXHIBIT 6-11 Standard Deduction Amounts*
2023 Tax Rate Schedules
Individuals Schedule X-Single if taxable income is over: But not over: The tax is:
$11,000 $44,725 10% of taxable income
$11,000 $44,725 $1,100 plus 12% of the excess over $11,000
$44,725 $95,375 $5,147 plus 22% of the excess over $44,725
$95,375 $182,100 $16,290 plus 24% of the excess over $95,375
$182,100 $231,250 $37,104 plus 32% of the excess over $182,100
$231,250 $578,125 $52,832 plus 35% of the excess over $231,250
$578,125 $174,238.25 plus 37% of the excess over $578,125
EXHIBIT 6-11 Standard Deduction Amounts*
2022 Amounts
Basic Standard Deduction Additional Standard Deduction for Age and/or Blindness at End of Year
$25,900 $1,400
$19,400 $1,750
$12,950 $1,750
$12,950 $1,400
Filing Status Married filing jointly Head of household Single Married filing separately
Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse if taxable income is over But not over The tax is
$22,000 $89,450 10% of taxable income
$22,000 $89,450 $2,200 plus 12% of the excess over $22,000
$89,450 $190,750 $10,294 plus 22% of the excess over $89,450
$190,750 $364,200 $32,550 plus 24% of the excess over $190,750
$364,200 $462,500 $74,208 plus 32% of the excess over $364,200
$462,500 $693,750 $105,664 plus 35% of the excess over $462,500
$693,750 $186,601.5 plus 37% of the excess over $693,750
2023 Amounts
Filing Status Married filing jointly Head of household Single Married filing separately
Basic Standard Deduction Additional Standard Deduction for Age and/or Blindness at End of Year
$27,700 $1,500
$20,800 $1,850
$13,850 $1,850
$13,850 $1,500
For individuals claimed as a dependent on another return, the 2023 standard deduction is the greater of (1) $1,250 or (2) $400 plus earned income not to exceed the standard deduction amount of those who are not dependents
Schedule Z-Head of Household If taxable income is over: But not over: The tax is
$15,700 $59,850 10% of taxable income
$15,700 $59,850 $1,570 plus 12% of the excess over $15,700
$59,850 $95,350 $6,860 plus 22% of the excess over $59,850
$95,350 $182,100 $14,678 plus 24% of the excess over $95,350
$182,100 $231,250 $35,490 plus 32% of the excess over $182,100
$231,250 $578,100 $51,226 plus 35% of the excess over $231,250
$578,100 $172,623.5 plus 37% of the excess over $578,100
Schedule Y-2-Married Filing Separate If taxable income is over: But not over: The tax is
$11,000 $44,725 10% of taxable income
$11,000 $44,725 $1,100 plus 12% of the excess over $11,000
$44,725 $95,375 $5,147 plus 22% of the excess over $44,725
$95,375 $182,100 $16,290 plus 24% of the excess over $95,375
$182,100 $231,250 $37,104 plus 32% of the excess over $182,100
$231,250 $346,875 $52,832 plus 35% of the excess over $231,250
$346,875 $93,300.75 plus 37% of the excess over $346,875
