Question
Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her. She also maintains
Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her. She also maintains the household in which her parents live and furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlotte's father received $2,400 from a part-time job. Charlotte has a salary of $80,000, a short-term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500.
Click here to access the standard deduction table to use, if required. If an amount is zero, enter "$0".
a. Compute Charlotte's taxable income.
b. Using the Tax Rate Schedules (click here), tax liability (before any allowable credits) for Charlotte is ___ for 2020.
c. Compute Charlotte's child and dependent tax credit. Charlotte's child tax credit is ____, of which _____ may be refundable and her dependent tax credit is ____ of which _____ may be refundable.
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