Howard has had a tough time. He is 36 and worked at a major manufacturer as a machinist until the plant closed. He enjoys working with his hands, and he is good at it; he can operate most machine tools, weld, and, in his words, "fix just about anything in the shop." Sponsored by a dislocated worker program, he returned to Technical College and got his Associate Degree in Mechanical Design Technology. He decided he was going to do what it took to avoid being a dislocated worker again, so he became, again in his words, "the guy who solves problems" and was hired by a much smaller job shop. This problem-solving attitude led to a series of raises and promotions. In fact, his boss said he has become indispensable, and will likely be the very last person ever laid off, if it comes to that. His wife died three years ago. As a result, childcare service for his daughters, ages 4 and 6, eats up a major chunk of his income. The good news is that the modest insurance settlement cleared up most debts, and made a substantial dent in the mortgage. In the past, Howard has had only a minimal amount withheld from his salary for federal income taxes. That makes more money available during the year, but for the last few years he has had to make a payment in April - another financial burden. This year he decided to increase his withholding a bit, to try to avoid paying in April. He wants his girls to go to college, so has created an investment fund for his daughter's education as well as his retirement, but has not selected investments that offer tax benefits. Overall, he needs to find strategies that will serve his current and future financial needs. Here is the financial information for this year:  Earnings from wages, $56,590  Interest on savings, $55  Checking account interest, $25  IRA deduction, $2,000 (enter as an adjustment to income)  Current standard deduction for filing status, head of household, $19,400(2022)  Amount withheld for federal income tax, $3078  Dependent care credit, $400  Child Tax Credit - what does he qualify for based on the children's ages? Your assignment: 1. What are Howard's major financial concerns? 2. How might he improve his tax planning efforts? 3. Calculate the following: a. Taxable income - fill in the numbers from above on the downloadable form to arrive at taxable income. i. An interactive, downloadable form is available at http://www.irs.gov/pub/irs- pdf/f1040.pdf?portlet=103 b. Total tax liability, based on tax tables. Hint: Find the tax owed then subtract the child tax credit and dependent care credit from this amount. i. Tax tables can be found at: http://www.irs.gov/pub/irs-pdf/i1040tt.pdf or in a file on this assignment page. 4. Based on his withholding, will he receive a refund or owe additional tax? How much? 5. Explain the difference between a deduction (like the standard deduction) and a credit