1.Fill the 1040 for Eric who is married and has two kids.(So 4 people in his family)

 Eric has the following information for the current tax year:

earningfrom wages 80000

interest earned on savings 80

dividend220

retirement contribution traditional6500

amount withheld for federal incometax 12000

tax credit for childcare:please figure out yourself using 2020 1040 instructions..

Standard deduction 24800

Itemized deduction 26000

EIC (you need to find outyourself)

You can use 1040 form if you prefer.

1. What is the total income?

1. What is the AGI?

1. What is taxable income?

1. What is tax liability?Please show how you get the child care tax credit.

1. What is the average tax rate?

1. what is Tax due or tax refund? How much?Please show how you get your EIC.

2.Tomis married and file tax jointly. His family has AGI $60000, the dental and medical expense is $8000, the income tax, real estate property tax and personal property tax are$11000. The mortgage interest is $12000. The donation is $2000. What is his itemized deduction? He should use itemized deduction or standard deduction? Why? You can use schedule A if you prefer.

3.what is the earned income credit forTom who ismarriedand have 2 kidsand filetaxjointlyif his earned income is $48000 and his AGI is $42000?

2.IfAmyhas the following itemized deductions:

$17000 Medical and dental expenses,herAGI$160000

$13500 State income tax

$4000 mortgage interest

$800Donations to church and other charities

Fillingstatus :Married and file jointly.

What is her itemized deduction? He should use itemized deduction or standard deduction? Why?

3.Amy can use $680taxcredit for child care. Or she can use $2800 child care deduction and her tax rate is 30%. Which way she should use? why?