Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Required information [The following information applies to the questions displayed below] In 2018, Amanda and Jaxon Stuart have a daughter who is 1 year old.

image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
Required information [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 a. Their AGI is $17,600, consisting of $6,300 of capital gains and $11,300 of wages. Earned income credit b. Their AGI is $17,600, consisting of $11,300 of lottery winnings (unearned income) and $6,300 of wages. Earned income credit c. Their AGI is $26,950, consisting of $21,300 of wages and $5,650 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Earned income credit d. Their AGI is $26,950, consisting of $5,650 of wages and $21,300 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Eamed income credit e. Their AGI is $11,300, consisting of $11,300 of lottery winnings (uneaned income). Earned income credit ntm EXHIBIT S-10 2018 Earned Income Credit Table (1) Maximum Earned Income (3) Maximum Credit Phase- Out for AGI (4) No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + (3)(5) (5) Phase-Out (1) x (2) greater) Over This Amount Percentage Qualifying Children Eligible for Credit (2) Credit % Credit (or earned income if Married taxpayers filing joint returns $ 6,780 7.65% S 519 $14,170 7,65% $20,950 1 10,180 34 3,461 24.350 15.98 46,010 2 14,290 40 5,716 24,350 21.06 51,492 3+ 14,290 45 6,431 24,350 21.06 54,884 All taxpayers except married taxpayers filing joint returns S 519 0 $6,780 7.65% S 8,490 7.65% $15,270 18,660 10,180 34 3,461 15.98 40,320 40 5,716 18,660 2 14,290 21.06 45,802 18,660 3+ 14,290 45 6,431 21.06 49,194

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Blockchain Techonology In Accounting And Auditing

Authors: Prof Oleksandr Melnychenko

1st Edition

1976900328, 978-1976900327

More Books

Students also viewed these Accounting questions

Question

Understand risk tolerance and how it is measured.

Answered: 1 week ago

Question

a valuing of personal and psychological privacy;

Answered: 1 week ago