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How do you calculate how much money will be refunded to Charlotte's tax credit? Charlotte (age 40) is a surviving spouse and provides all of

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How do you calculate how much money will be refunded to Charlotte's tax credit?

Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her (all are under age 16). 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. $ 57,200 b. Using the Tax Rate Schedules (click here), tax liability (before any allowable credits) for Charlotte is $ 6,469 for 2020. c. Compute Charlotte's child and dependent tax credit. Charlotte's child tax credit is $ 8,000 , of which $ X may be refundable and her dependent tax credit is $ 1,000 of which $ 0 may be refundable

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