How much tax can be saved if John shifts $6,000 of income to his 24 year old dependent son? John is in the 25 percent tax bracket and his son has no other taxable income in 2011.

Name: How much tax can be saved if John shifts $6,000 of income to his 24 year old dependent son? John is in the 25 percent tax bracket and his son has no other taxable income in 2011.
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Question

Quizplus · Accepted Answer

$6,000 x .25 = $1,500; ($6,000 - $950) x .10 = $505; $1,500 - $505 = $995

How Much Tax Can Be Saved If John Shifts $6,000