9. On March 31, 2018, Mary Jones purchased 1,000 shares of XYZ common stock for $12,000. On September 30, 2018 she receives a 20% nontaxable common stock dividend.

On June 30, 2019, the new dividend shares are sold for $30. per share.

Determine the tax treatment for the receipt and sale of the stock dividend

EARNED INCOME CREDIT

2019

PHASEOUT

QUALIFYING CHILDREN	%	EIC LIMIT	MAX EIC		QUALIFYING % CHILDREN	BEGIN PHASEOUT
0	7.65%		6,920	529	0	7.65%	8,650
1	34%		10,370	3,526	1	15.98%	19,030
2	40%		14,570	5,828	2	21.06%	19,030
3 OR MORE	45%		14,570	6,557	3 OR MORE	21.06%	19,030