! Required information Problem 8-74 (LO 8-4) (Algo) [The following information applies to the questions displayed below.) In 2021, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 25 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 8-11. (Leave no answer blank. Enter zero if applicable.) Problem 8-74 Part a (Algo) a. Their AGI is $18,800, consisting of $13,900 of capital gains and $4,900 of wages. Earned income credit Required information Problem 8-74 (LO 8-4) (Algo) [The following information applies to the questions displayed below.] In 2021, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 25 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 8-11. (Leave no answer blank. Enter zero if applicable.) Problem 8-74 Part-b (Algo) b. Their AGI is $18,800, consisting of $10,100 of lottery winnings (unearned income) and $8,700 of wages. Earned income credit ! Required information Problem 8-74 (LO 8-4) (Algo) [The following information applies to the questions displayed below.) In 2021, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 25 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 8-11. (Leave no answer blank. Enter zero if applicable.) Problem 8-74 Part-c (Algo) c. Their Al is $28,150, consisting of $23,100 of wages and $5,050 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Earned income credit Required information Problem 8-74 (LO 8-4) (Algo) (The following information applies to the questions displayed below.) In 2021, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 25 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 8-11. (Leave no answer blank. Enter zero if applicable.) Problem 8-74 Part-d (Algo) d. Their AGI is $28,150, consisting of $5,050 of wages and $23,100 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Earned income credit Required information Problem 8-74 (LO 8-4) (Algo) (The following information applies to the questions displayed below.) In 2021, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 25 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 8-11. (Leave no answer blank. Enter zero if applicable.) Problem 8-74 Part-e (Algo) e. Their AGI is $10,100, consisting of $10,100 of lottery winnings (unearned income). Earned income credit EXHIBIT 8-11 2021 Earned Income Credit Table (1) Maximum Earned Income Eligible for Credit No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] Qualifying Children 0 1 $9,820 10,640 14,950 14,950 (3) Credit Phase-Out for Maximum AGI (or earned income (5) (2) Credit if greater) Over This Phase-Out Credits (1) (2) Amount Percentage Married taxpayers filing joint returns 15.3% $1,502 $14,820 15.3% 34 3,618 25,470 15.98 40 5.980 25.470 21.06 45 6.728 25,470 21.06 All taxpayers except married taxpayers filing joint returns 15.3% $ 1,502 $ 11,610 15.3% 34 3,618 19,520 15.98 40 5,980 19,520 21.06 45 6,728 19,520 21.06 $24.637 48.108 53.865 57,414 2 3+ 0 1 2 $ 9,820 10,640 14,950 14,950 $21,427 42.158 47.915 51,464 3+ Source: Internal Revenue Code. "Rev. Proc. 2020-45." www.irs.gov
