Please help with the questions listed below that are in bold: Using 2020 tax law. Ignoring March 2021 legislation and use 2020 instructions. Andy and
Please help with the questions listed below that are in bold:
Using 2020 tax law. Ignoring March 2021 legislation and use 2020 instructions.
Andy and Sally are married and under 50. They have 3 children under 12. They pay Sallys mom $200 a month for the entire year to care for the children.
Sallys salary (Federal withholding $ 800) 8,000
Andys salary (Federal withholding $500) 7,000
If they take a standard deduction, compute their taxable income:
Do they qualify for an earned income credit? Why or why not? If so, how much?
Do they qualify for a childcare credit? Why or why not? If so, how much?
Do they qualify for a child tax? Why or why not? If so, how much?
Compute their tax please show your work.
Compute their tax liability or refund:
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