1. Heinz and Sharon are Married Filing Jointly taxpayers. During 2022, they each made $50,000 in W2 wages (total $100,000). They also have a joint investment account. The investment account reported on a 1099-DIV the payment of Ordinary dividends of $1,200 and qualified dividends of $800. In the material attached to the 1099-DIV, the documents reported that $550 of the ordinary dividends and $400 of the qualified dividends were from various foreign sources. It also reported foreign taxes paid of $35. It will be helpful to review the instructions for form 1116.

The couple has 4 dependents: Wyatt - 22 months old, Emily 7 years old, Kate 19 years old, and Becky 20 years old.

Kate is a Sophomore (full-time student) at UW-Whitewater. Kates 1098T from the University shows her tuition (all paid in the current tax year) was $8,500 and she had a scholarship of $2,000.

Becky is a Junior (full-time student) at UW-Whitewater. Beckys 1098T from the University shows her tuition (all paid in the current tax year) was $8,500 and she had a scholarship of $10,000.

Neither Kate nor Becky have never had any trouble with the police. Becky has no other income.

The couple paid $5,200 for child care for Wyatt during the year, and $400 for Emily. It will be helpful to review the instructions for form 2441. If you have questions as to how many dependents to use for possible child and dependent care credit, see the TIP under the heading Dollar Limit on page 12 of the 2022 IRS publication 503 Child and Dependent Care Expenses.

Calculate Heinz and Sharons tax credits for the year. Explain your answers. Show clearly how much of each credit is refundable and how much is non-refundable. (SHOW ALL YOUR WORK FOR EACH CREDIT).