Problem 8-74 (LO 8-4)

[The following information applies to the questions displayed below.] In 2018, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs. What is their earned income credit in the following alternative scenarios if they file jointly? Use Exhibit 8-10.

Problem 8-74 Part-c

c. Their AGI is $28,600, consisting of $22,400 of wages and $6,200 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.)

d. Their AGI is $28,600, consisting of $6,200 of wages and $22,400 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.)

EXHIBIT 8-1O 2018 Earned Income Credit Table No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] Credit Phase- Out for AGI (or earned income if Maximum Earned Maximum greater) Qualifying Income Eligible Childrern Credit Over This Phase-Out for Credit Credit % | (1) (2) AmountPercentage Married taxpayers filing joint returns $14,170 24,350 24,350 24,350 7.65% | $ 519 $20,950 46,010 51,492 54,884 0 $ 6,780 10,180 14,290 14,290 3,461 5,716 6,431 All taxpayers except married taxpayers filing joint returns 34 40 45 15.98 21.06 21.06 2 7.65% | $ 519 3,461 5,716 6,431 $ 8,490 18,660 18,660 18,660 $15,270 40,320 45,802 49,194 0 $ 6,780 10,180 14,290 14,290 34 40 45 15.98 21.06 21.06 2