LO $8-4$

In $2024,$ Amanda and Jaxon Stuart have a daughter who is $1$ year old. The Stuarts are full$-$time students and 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$$15,000,$ consisting of $$14,000$ of capital gains and $$1,000$ of wages.

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

c$$30,000,$ consisting of $$23,000$ of wages and $$7,000$ of lottery winnings $($unearned income$).$

d$$30,000,$ consisting of $$5,000$ of wages and $$25,000$ of lottery winnings $($unearned income$).$

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

EXHIBIT $8-102024$ Earned Income Credit Table

Qualifying Children

$(1)$ Maximum Earned Income Eligible for Credit

$(2)$ Credit $\%$

$(3)$ Maximum Credit $(1)$ xx$(2)$

$(4)$ Credit Phase$-$Out for AGI $($or earned income if greater$)$ over This Amount

$(5)$ Phase$-$Out Percentage

No Credit When AGI $($or earned income if greater$)$ Equals or Exceeds This Amount $(4)+[(3)//(5)]$ Married taxpayers filing joint returns $0$ $ $8,2607\mathrm{.}65\%$ $ $632$ $ $17,2507\mathrm{.}65\%$ $ $25,511112,390344,21329,64015\mathrm{.}9856,004217,400406,96029,64021\mathrm{.}0662,6883+17,400457,83029,64021\mathrm{.}0666,819$ All taxpayers except married taxpayers filing joint returns $0$ $ $8,2607\mathrm{.}65\%$ $ $632$ $$10,3307\mathrm{.}65\%$ $ $18,591112,390344,21322,72015\mathrm{.}9849,084217,400406,96022,72021\mathrm{.}0655,7683+17,400457,83022,72021\mathrm{.}06$ $ $59,899$

Source: Rev. Proc. $2023-34$ and $32.$ ONLY ANSWER PART C AND D$.$