In 2018, 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.)

a. Their AGI is $15,000, consisting of $5,000 of capital gains and $10,000 of wages. (Find "earned income credit")

ans: Earned Income credit = 0

b. Their AGI is $15,000, consisting of $10,000 of lottery winnings (unearned income) and $5,000 of wages. (Find "earned income credit")

ans: Earned Income Credit = $1700

c. Their AGI is $25,000, consisting of $20,000 of wages and $5,000 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) (Find "earned income credit")

ans: Earned Income Credit = ????

d. Their AGI is $25,000, consisting of $5,000 of wages and $20,000 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) (Find "earned income credit")

ans: Earned Income Credit = ????

e. Their AGI is $10,000, consisting of $10,000 of lottery winnings (unearned income). (Find "earned income credit")

ans: Earned Income Credit = ????

EXHIBIT 8-10 2018 Earned Income Credit Table (1) Qualifying Children Maximum Earned Income Eligible for Credit O $6.780 10.180 14,290 14.290 (3) No Credit When AGI (or earned Maximum Credit Phase-Out for AGI income if greater) Equals or (2) Credit (or earned income if Phase-Out Exceeds This Amount (4) + Credit % (1) (2) greater) Over This Amount Percentage [(3)/(5)] Married taxpayers filing joint returns 7.65% 1 S 519 $14,170 7.65% $20.950 3.461 24 350 15 98 46,010 40 5,716 24,350 21.06 51,492 45 6 ,431 24,350 21.06 54,884 All taxpayers except married taxpayers filing joint returns 7.65% $ 519 $ 8.490 7.65% $15,270 34 3.461 18,660 15.98 40,320 40 5.716 18.660 21.06 45,802 45 6 ,431 18,660 | 21.06 49.194 3+ $6.780 10.180 14,290 14.290 2 3+ EXHIBIT 8-10 2018 Earned Income Credit Table (1) Qualifying Children Maximum Earned Income Eligible for Credit O $6.780 10.180 14,290 14.290 (3) No Credit When AGI (or earned Maximum Credit Phase-Out for AGI income if greater) Equals or (2) Credit (or earned income if Phase-Out Exceeds This Amount (4) + Credit % (1) (2) greater) Over This Amount Percentage [(3)/(5)] Married taxpayers filing joint returns 7.65% 1 S 519 $14,170 7.65% $20.950 3.461 24 350 15 98 46,010 40 5,716 24,350 21.06 51,492 45 6 ,431 24,350 21.06 54,884 All taxpayers except married taxpayers filing joint returns 7.65% $ 519 $ 8.490 7.65% $15,270 34 3.461 18,660 15.98 40,320 40 5.716 18.660 21.06 45,802 45 6 ,431 18,660 | 21.06 49.194 3+ $6.780 10.180 14,290 14.290 2 3+