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In 2021, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 25 years
In 2021, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 25 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 8-11. (Leave no answer blank. Enter zero if applicable.) a. Their AGI is $15,800, consisting of $12,400 of capital gains and $3,400 of wages. Earned income credit b. Their AGI is $15,800, consisting of $10,000 of lottery winnings (unearned income) and $5,800 of wages. Earned income credit 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 e. Their AGI is $10,000, consisting of $10,000 of lottery winnings (unearned income). Earned income credit EXHIBIT 8-11 2021 Earned Income Credit Table (1) Maximum Earned Income Eligible for Credit Qualifying Children (4) (3) Credit Phase-Out for Maximum AGI (or earned income (2) Credit if greater) Over This Credit % (1) (2) Amount Married taxpayers filing joint returns 15.3% $1,502 $14,820 No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] (5) Phase-Out Percentage 0 $ 9,820 15.3% $24,637 1 10,640 34 3,618 25,470 15.98 48,108 2 14,950 53,865 3+ 14,950 57,414 40 5,980 25,470 21.06 45 6,728 25,470 21.06 All taxpayers except married taxpayers filing joint returns 15.3% $ 1,502 $ 11,610 15.3% 0 $ 9,820 $21,427 1 10,640 34 3,618 19,520 15.98 42,158 2 14,950 40 5,980 19,520 21.06 47,915 3+ 14,950 45 6,728 19,520 21.06 51,464
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