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In 2022, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and are both 23 years old.
In 2022, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and 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 8-11. Note: Leave no answer blank. Enter zero if applicable. Required: a. Their AGI is $16,400, consisting of $12,700 of capital gains and $3,700 of wages. b. Their AGI is $16,400, consisting of $10,100 of lottery winnings (unearned income) and $6,300 of wages. c. Their AGI is $28,150, consisting of $23,100 of wages and $5,050 of lottery winnings (unearned income). Note: Round your intermediate calculations to the nearest whole dollar amount. d. Their AGI is $28,150, consisting of $5,050 of wages and $23,100 of lottery winnings (unearned income). Note: Round your intermediate calculations to the nearest whole dollar amount. e. Their AGI is $10,100, consisting of $10,100 of lottery winnings (unearned income). EXHIBIT 8-11 2022 Earned Income Credit Table (4) (1) Maximum Earned (3) Maximum Credit Phase-Out for Qualifying Income Eligible (2) Children for Credit Credit % Credit (1) (2) AGI (or earned income if greater) Over This Amount (5) Phase-Out Percentage No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] Married taxpayers filing joint returns 0 $7,320 7.65% $560 $15,290 7.65% $22,610 1 10,980 34 3,733 26,260 15.98 49,622 2 15,410 40 6,164 26,260 21.06 55,529 3+ 15,410 45 6,935 26,260 21.06 59,187 All taxpayers except married taxpayers filing joint returns 0 $ 7,320 7.65% $ 560 $9,160 15.30% $16,480 1 10,980 34 3,733 20,130 15.98 43,492 2 15,410 40 6,164 20,130 21.06 49,399 3+ 15,410 45 6,935 20,130 21.06 53,057 Source: Internal Revenue Code. "Rev. Proc. 2020-45." www.irs.gov
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