Use 2021 law including amounts for credits, income tax liability calculations, tax rates, etc. Taxpayer is single and has 2 dependent children under the age of 17 in the house. One child is 4 and the other is 7. She has wage income of $19,520. Question 4a what is the amount of income tax liability before credits? Question 4b. What are the amounts of the refundable child tax credit and Earned Income Tax Credit (EITC) that the taxpayer is entitled to claim? Question 4c. What is the amount of FICA paid? Question 4d. What is the net of the refundable credits and the FICA?

Change in Facts: Taxpayer has completed a certification and is eligible for a significant change in responsibility and pay. Her new annual salary will be $47,915.

Question 4e. What is the amount of income tax liability before credits? Question 4f. What amount(s), if any, refundable child tax credit, and EITC is the taxpayer entitled to claim? Question 4g. What is the amount of FICA paid? Question 4h. What is the net of the refundable credits and FICA? Question 4i. Comparing the two scenarios what is the total tax cost on earning the additional $28,395?