William and Irma have two children, Tom, age 13, and Sara, age 8. For 2014, Tom and Sara have a total parental tax of $5,600. Tom's net unearned income is $5,000, while Sara's net unearned income is $15,000. How much of the parental tax would be allocated to Sara on her 2014 tax return?

Question

Quizplus · Accepted Answer

The parental tax is allocated based on the proportion of each child's net unearned income. Sara's net unearned income is $15,000 out of a total of $20,000 ($5,000 from Tom + $15,000 from Sara). Therefore, Sara's share of the parental tax is ($15,000 / $20,000) * $5,600 = $4,200.

William and Irma Have Two Children, Tom, Age 13, and Sara