Question
1.Determine the total allowable 2015 earned income credit in each of the following situations: a. Judy is single and earns $5,500 in salary for the
1.Determine the total allowable 2015 earned income credit in each of the following situations:
a. Judy is single and earns $5,500 in salary for the year. In addition, she receives $2,300 in unemployment compensation during the year.
b. Monica is a single parent with 1 dependent child. She earns $12,500 from her job as a taxicab driver. She also receives $4,700 in child support from her ex-husband.
c. Paul and Yvonne are married and have three dependent children. Their earned income is $21,300, and they receive $3,500 in interest income from their savings account.
d. Hattie is married to Herbert,and they have two dependent children. During February, Herbert leaves and hasn't been seen or heard from since. Hattie earns $16,400 from her job. During January and February, Herbert earned $4,800, but Hattie has no idea how much he earned for the entire year.
2. Determine whether each of the following taxpayers must file a return for 2016:
a. Jamie is a dependent who has wages of $4,050.
b. Joel is a dependent who has interest income of $1,200.
c. Martin is self-employed. His gross business receipts are $24,000, and business expenses are $24,300. His only other income is $2,600 in dividends from stock he owns
d. Valerie is 68 and unmarried. Her income consists of $6,500 in Social Security benefits and $11,500 from a qualified employer-provided pension plan.
e. Raul and Yvonne are married and have 2 dependent children. Their only income is Raul's $21,000 salary.
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