Question
David Miller (age 34, SSN 846-66-7922) and his wife, Emily Miller (age 33, SSN 234- 56-7891), reside at 293 E. Main Street in Sterling, MA,
David Miller (age 34, SSN 846-66-7922) and his wife, Emily Miller (age 33, SSN 234-
56-7891), reside at 293 E. Main Street in Sterling, MA, 01564 with their two children whom they fully support: Catherine (age 13, SSN 397-73-8399) and Michael (age 11, SSN 397-73-8566). During the year, Emily worked full-time as a customer service representative at a local bank and earned $37,600. Her employer withheld the following from her wages: Federal income tax $2,250.00 State income tax 1,124.60 Social security tax 2,331.20 Medicare tax 545.20 ROTH IRA contribution 5,500.00 David attended college full-time for 5 months and part-time (at least half time) for 7 months in pursuit of a bachelors degree in accounting. He attended the University of Massachusetts, which is located at 600 University Drive in Amherst, MA 01003. David received a tax-free scholarship that paid for most of his college expenses, however, he did pay $900 for tuition and fees. The college did not send David a Form 1098-T for these payments, however, he does have documentation to substantiate his expenditures. This will be the first year that David has claimed any education credits; he does not have any other degrees. The Millers had other income consisting of the following: Interest on CDs at Platinum Savings Bank $600 Municipal bond interest (state of MA) $2,000 Qualified
-------------------------------------------------
Based on the information above, please answer the questions below. I would like to double check and compare with my answers. Sorry for uploading too many questions at once. Thank you.
Additional child tax credit | ||
Do the taxpayers qualify for the Additional Child Tax credit? | ||
If yes, complete the following questions. If no, skip to Earned Income credit. | ||
Amount remaining after non-refundable credit is taken? | ||
IRS limit for refundable portion? | ||
15% of earned income above $2,500? | ||
Amount of refundable child tax credit that can be taken | ||
Earned income credit | ||
Does the taxpayer qualify for the earned income credit? | ||
If yes, complete the following question. If no, skip to Additional amount due (or refund amount) | ||
Amount of earned income credit that can be taken | ||
Additional amount due (or refund amount) | ||
Amount of federal income tax withheld | ||
Will the taxpayer be getting a refund, or do they owe additional tax? | ||
What is the amount? |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored 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