Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

I have tried to figure this out for 2 hours now and can't seem to get it right. Can someone please help? Required information [The

I have tried to figure this out for 2 hours now and can't seem to get it right. Can someone please help?

image text in transcribedimage text in transcribed

Required information [The following information applies to the questions displayed below.) In 2020, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they 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? Use Exhibit 8-10. (Leave no answer blank. Enter zero if applicable.) c. Their AGI is $28,150, consisting of $23,100 of wages and $5,050 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Earned income credit EXHIBIT 8-10 2020 Earned Income Credit Table No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5) (4) (1) (3) Credit Phase-Out for Maximum Earned Maximum AGI (or earned income (5) Qualifying Income Eligible (2) Credit if greater) Over This Phase-Out Children for Credit Credit % (1) (2) Amount Percentage Married taxpayers filing joint returns 0 $ 7,030 7.65% $ 538 $14,680 7.65% 1 10,540 34 3,584 25,220 15.98 2 14,800 40 5.920 25,220 21.06 3+ 14,800 45 6,660 25,220 21.06 All taxpayers except married taxpayers filing joint returns 0 $7,030 7.65% $ 538 $ 8,790 7.65% 1 10,540 34 3,584 19,330 15.98 2 14,800 40 5,920 19,330 21.06 3+ 14,800 45 6,660 19,330 21.06 Source: Internal Revenue Code. "Rev. Proc. 2018-37." www.irs.gov $21,710 47,646 53,330 56,844 $15,820 41,756 47,440 50,954

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Version 3.0

Authors: Leah Kratz, Joe Ben Hoyle, C. J. Skender

3rd Edition

1453392904, 9781453392904

Students also viewed these Accounting questions

Question

=+5 Set prices for the long run and/or the short run.

Answered: 1 week ago