Sara Is Filing as Head of Household and Has 2014

question 89

Multiple Choice

Sara is filing as head of household and has 2014 taxable income of $57,000 which includes $3,000 of net long-term capital gain. The net long-term capital gain is made up of $1,000 25% gain and $2,000 0%/15%/20% gain. What is the tax on her taxable income using the alternative tax method?

• A) $0.
• B) $8,363.
• C) $8,663.
• D) $8,463.
• E) None of the above.

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Definitions:

Pendleton Act

A federal law enacted in 1883 that established that positions within the federal government should be awarded on the basis of merit instead of political affiliation.

Spoils System

A practice where a political party, after winning an election, gives government jobs to its voters as a reward for working toward victory.

Pendleton Act

A United States federal law enacted in 1883, establishing that government jobs should be awarded based on merit rather than political affiliation.

Hatch Act

A U.S. federal law that prohibits civil service employees in the executive branch from engaging in some forms of political activity.