In 2016, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are

Question:

In 2016, Amanda and Jaxon Stuart have a daughter who is one 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?

a) Their AGI is $15,000, consisting of $5,000 of capital gains and $10,000 of wages.

b) Their AGI is $15,000, consisting of $10,000 of lottery winnings (unearned income) and $5,000 of wages.

c) Their AGI is $25,000, consisting of $20,000 of wages and $5,000 of lottery winnings (unearned income).

d) Their AGI is $25,000, consisting of $5,000 of wages and $20,000 of lottery winnings (unearned income).

e) Their AGI is $10,000, consisting of $10,000 of lottery winnings (unearned income).

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

McGraw-Hill's Taxation Of Individuals

ISBN: 9781259729027

2017 Edition

Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver

Question Posted: