Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This is for 2020. In 2020, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they

image text in transcribedimage text in transcribedThis is for 2020.

In 2020, 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. (Leave no answer blank. Enter zero if applicable.) d. Their AG is $28,000, consisting of $5,000 of wages and $23,000 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.) Answer is complete but not entirely correct. Earned income credit $ 3.172 X EXHIBIT 8-10 2020 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 $ 7,030 10,540 14,800 14,800 (3) Credit Phase-Out for AGI Maximum (or earned income if (5) (2) Credit greater) Over This Phase-Out Credit % (1) (2) Amount Percentage Married taxpayers filing joint return 7.65% $ 538 $14,680 7.65% 34 3,584 25,220 15.98 40 5,920 25,220 21.06 45 6,660 25,220 21.06 All taxpayers except married taxpayers filing joint returns 7.65% $ 538 S 8,790 7.65% 34 3,584 19,330 15.98 40 5.920 19,330 21.06 45 6,660 19,330 21.06 $21.710 47.646 53,330 56,844 2 3- 0 1 $ 7,030 10,540 14,800 14,800 $15,820 41,756 47,440 50.954 2 3- Source: Internal Revenue Code. "Rev. Proc. 2018-57." www.irs.gov

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

Auditing and Assurance services an integrated approach

Authors: Alvin a. arens, Randal j. elder, Mark s. Beasley

15th edition

978-0133125634, 9780133423815, 133125637, 133423816, 978-0133125689

More Books

Students also viewed these Accounting questions

Question

How is vacation and sick time accrued?

Answered: 1 week ago

Question

Understand highlights of legislation enacted in 1964 and beyond

Answered: 1 week ago