Problem 1ITA: 118; IT-513R

Jack and Jill were married on December 1, 2017.Jill and her two children of a previous marriage moved into Jack's home.Jill's children are 14 and 16 and have no income.

Jack and Jill have the following income for tax purposes for 2017:

Prior to the Subsequent to

marriagethe marriage

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

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

You have been asked to:

A)Determine the optimum personal tax credits under section 118 for both Jack and Jill for 2017

B)How would your answer change in 2018 of the income levels remain the same