How much tax can be saved if John shifts $2,000 of income to his 18 year old dependent son? John is in the 25 percent tax bracket and his son has no other income that is taxable in 2017.

Name: How much tax can be saved if John shifts $2,000 of income to his 18 year old dependent son? John is in the 25 percent tax bracket and his son has no other income that is taxable in 2017.
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Question

Quizplus · Accepted Answer

$2,000 x .25 = $500; ($2,000 - $1,050) x .10 = $95; $500 - $95 = $405

How Much Tax Can Be Saved If John Shifts $2,000