Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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.)

image text in transcribed

image text in transcribed

image text in transcribed

No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] EXHIBIT 8-10 2020 Earned Income Credit Table (1) Maximum Earned Income Maximum Credit Phase-Out for AGI Qualifying Eligible for (2) Credit (or earned income if Phase-Out Children Credit Credit % (1) * (2) greater) Over This 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% S 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 $21.710 47.646 53.330 56.844 $15.820 41.756 47,440 50.954 c. Their AGI is $28,000, consisting of $23,000 of wages and $5,000 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Earned income credit d. Their AGI is $28,000, consisting of $5,000 of wages and $23,000 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Earned income credit

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

Strategic Management Theory And Cases An Integrated Approach

Authors: Charles W. L. Hill, Melissa A. Schilling, Gareth R. Jones

13th Edition

0357033841, 978-0357033845

More Books

Students also viewed these Accounting questions

Question

Th eir solution was to give me a long-distance number to call.

Answered: 1 week ago