Jack and Jill were married on December 1, 2018. Jill and her two children of a previous marriage moved into Jacks home. Jills children are 14 and 16 and have no income. Jack and Jill have the following income for tax purposes for 2018:

__________________________Prior to marriage __________Subsequent to marriage

Jack ......................................................................... $33,000 ........................................$3,000

Jill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,800 ..............................................800

REQUIRED

(A) Determine the optimum personal tax credits under section 118 for both Jack and Jill for 2018.

(B) How would your answer change in 2019 if the income levels remain the same?