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o You received no credit for this question in the previous attempt Required information [The following information applies to the questions displayed below] 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 for the year in each of the following alternative circumstances? Use Tax Rate Schedule for reference o. Carson is 17 years old at year-end and earned $12.300 from his summer job and part-time job after school. This was his only source of income

Explanation / Answer

1) Gross Income=12300
standard deduction=5950
Person exemption=0(since she is dependent)
Taxable Income=12300-5950+0=6350
Total tax=10%*6350=635

2)Taxpayers can avoid an underpayment penalty if their withholdings and estimated tax payments equal or exceed one of the following
1) 90% of current tax liability=90%*10750=9675
2)100% previous tax liability=100%*15500=15500
Here the withholding does not equal or exceed 9675 or 15500 so there should be increase in withodling by 9675-8275=1400

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