Question
74. In 2022, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are full time students and are both 23
74. In 2022, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are full time students and are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs. What is their earned income credit in the following alternative scenarios if they file jointly?
a. Their AGI is $15,000, consisting of $12,000 of capital gains and $3,000 of wages. Based on 32(i), taxpayers with investment income in excess of $10,300 are not eligible for the earned income credit. Capital gains are considered as investment income for this purpose.
b. Their AGI is $15,000, consisting of $10,000 of lottery winnings (unearned income) and $5,000 of wages.
c. Their AGI is $28,000, consisting of $23,000 of wages and $5,000 of lottery winnings (unearned income).
d. Their AGI is $28,000, consisting of $5,000 of wages and $23,000 of lottery winnings (unearned income).
e. Their AGI is $10,000, consisting of $10,000 of lottery winnings (unearned income).
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started