Q1) Kyle worked as a free-lance software engineer for the first three months of 2014. During that time, he earned $92,000 of self-employment income. On April 1, 2014, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $192,000 in salary.
What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?
Q2) In 2014, 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. Use Tax Rate Schedule for reference.
What is Carson's tax liability for the year in each of the following alternative circumstances?
a. Carson is 17 years old at year-end and earned $10,850 from his summer job and part-time job after school. This was his only source of income.
b. Carson is 23 years old at year-end. He is a full-time student and earned $10,850 from his summer internship and part-time job. He also received $5,300 of qualified dividend income.