Answer:
Her gross tax liability is $4,882
Explanation:
According to given data out of $52,300 , $10,000 is qualified dividend so remaining $42,300 will be taxed at normal rate.
Therefore, tax on ordinary income = $1,360 + ($42,300-$13,700)*12% =
tax on ordinary income =$4,792
In qualified dividend is taxed at 0% if income upto $51,700.
Hence excess $52,300-$51,700) will be taxed at 15%
Hence tax on dividend = $600*15% = $90
Hence total tax = $4,792+$90 = $4,882
Her gross tax liability is $4,882
