Question
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:
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started