Finance Questions

Archive for June, 2007

Question: is a 2004 nissan maxima a good car?

I get my license in July 2009. I want to get a 2004 maxima and finance it with put a down payment of about $3000 I have saved up from working to buy my car (my mom was the one brought up the idea). But she thinks that a 2004 maxima might be too nice and I should start with an older car. Should I convince her to let me get the maxima or start with an older car?

Answer: considering its 2008, a 2004 is an old car and Maxima's are great cars... my father had his old one for almost 8 years with minor problems.

they are reliable and safe and Ive ever heard of anyone having any issues with them

good luck & congrats

Chris Zeitner- Finance Manager Advantage Nissan

How is a dependent child 's income taxed?

Dependent children age 14 and over are taxed at the rates for Single taxpayers. 
Standard Deduction: A dependent child is entitled to a standard deduction of: 

The higher of: 

• $850 (for 2006) or,
• $300 plus earned income (wages, salary, tips, etc.) up to a maximum of $5,150.

Income in excess of the applicable standard deduction is subject to tax. A dependent child is not entitled to a personal exemption. 
Child age 14 or over (Kiddie Tax does not apply): 
All income in excess of the standard deduction is taxed at the child's tax rate (single taxpayer). 
Child under age 14:

Type of Income	Amount of Income	Tax Rate
Unearned income only	First $850 (standard deduction)	No tax
	$850 - $1,700	Child's tax rate
	Over $1,700	Parent's marginal tax rate
Earned income only	$5,150 or less (standard deduction)	No tax
	Over $5,150	Child's tax rate
Both earned and unearned income*	First $850 (standard deduction)	No tax
	Excess over standard deduction
	· Unearned income of $1,700 or less	Child's tax rate
	· Unearned income over $1,700	Parent's marginal tax rate
	· Earned income	Child's tax rate

Note: If the dependent child 's gross income is below the standard deduction there is no tax due and no federal income tax return is required to be filed.