In 2019, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts...
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In 2019, 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.) a. Their AGI is $18,200, consisting of $6,600 of capital gains and $11,600 of wages. Earned income credit b. Their AGI is $18,200, consisting of $11,600 of lottery winnings (unearned income) and $6,600 of wages. Earned income credit c. Their AGI is $27,400, consisting of $21,600 of wages and $5,800 of lottery winnings (unearned income). calculations to the nearest whole dollar amount.) Earned income credit d. Their AGI is $27,400, consisting of $5,800 of wages and $21,600 of lottery winnings (unearned income). calculations to the nearest whole dollar amount.) Earned income credit e. Their AGI is $11,600, consisting of $11,600 of lottery winnings (unearned income). Earned income credit EXHIBIT 8-10 2019 Earned Income Credit Table (1) No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] Maximum (3) Maximum Credit Phase- Out for AGI Credit (1) x (2) greater) Over This Amount Percentage (4) Earned Income (5) Qualifying Children Eligible for Credit (2) (or earned income if Phase-Out Credit % Married taxpayers filing joint returns $ 6,920 7.65% $ 529 $14,450 7.65% $21,370 1 10,370 34 3,526 24,820 15.98 46,884 14,570 40 5,828 24,820 21.06 52,493 3+ 14,570 45 6,557 24,820 21.06 55,952 All taxpayers except married taxpayers filing joint returns $ 6,920 7.65% $ 529 $ 8,650 7.65% $15,570 1 10,370 34 3,526 19,030 15.98 41,094 2 14,570 40 5,828 19,030 21.06 46,703 3+ 14,570 45 6,557 19,030 21.06 50,162 Source: Rev. Proc. 2018-57. 2. In 2019, 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.) a. Their AGI is $18,200, consisting of $6,600 of capital gains and $11,600 of wages. Earned income credit b. Their AGI is $18,200, consisting of $11,600 of lottery winnings (unearned income) and $6,600 of wages. Earned income credit c. Their AGI is $27,400, consisting of $21,600 of wages and $5,800 of lottery winnings (unearned income). calculations to the nearest whole dollar amount.) Earned income credit d. Their AGI is $27,400, consisting of $5,800 of wages and $21,600 of lottery winnings (unearned income). calculations to the nearest whole dollar amount.) Earned income credit e. Their AGI is $11,600, consisting of $11,600 of lottery winnings (unearned income). Earned income credit EXHIBIT 8-10 2019 Earned Income Credit Table (1) No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] Maximum (3) Maximum Credit Phase- Out for AGI Credit (1) x (2) greater) Over This Amount Percentage (4) Earned Income (5) Qualifying Children Eligible for Credit (2) (or earned income if Phase-Out Credit % Married taxpayers filing joint returns $ 6,920 7.65% $ 529 $14,450 7.65% $21,370 1 10,370 34 3,526 24,820 15.98 46,884 14,570 40 5,828 24,820 21.06 52,493 3+ 14,570 45 6,557 24,820 21.06 55,952 All taxpayers except married taxpayers filing joint returns $ 6,920 7.65% $ 529 $ 8,650 7.65% $15,570 1 10,370 34 3,526 19,030 15.98 41,094 2 14,570 40 5,828 19,030 21.06 46,703 3+ 14,570 45 6,557 19,030 21.06 50,162 Source: Rev. Proc. 2018-57. 2.
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The Earned Income Tax Credit EITC is a credit set up by the IRS to assist lowandmiddle level income ... View the full answer
Related Book For
Essentials of Federal Taxation 2018
ISBN: 9781260007640
9th edition
Authors: Brian Spilker, Benjamin Ayers, John Robinson, Edmund Outslay, Ronald Worsham, John Barrick, Connie Weaver
Posted Date:
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