QUESTION 8 (CHAPTER 12) Please use the tables below to help you calculate 2024 tax liability (or refund) in each of the following independent scenarios. Please assume that a taxpayer who is eligible for the Earned Income Tax Credit will be able to take the maximum credit amount, even if the taxpayer's AGI puts her in the phaseout range. In other words, for purposes of this problem only, a taxpayer is either not eligible for the credit or eligible for the maximum credit. Also, please use only the two credits below in your calculation. Earned Income Credit (for Single Taxpayers & Head of Household) Tax Year 2024 No. of Maximum Credit Income at Max Phaseout Begins Phaseout Ends Children Credit $632 $8,260 $10,330* $18,591* 1 $4,213 $12,390 $22,720* $49,084* 2 $6,960 $17,400 $22,720* $55,768* 3 or more $7,830 $17,400 $22,720* $59,899 Taxpayers with investment income of more than $11,600 are not eligible for the credit. * Phaseout based on the greater of earned income or AGI. Increase by $6,920 for joint return filers. Saver's Credit 2024 Credit Rate Married Filing Head of Household Single & Married Jointly Separate 50% of your AGI not more than AGI not more than AGI not more than contribution $46,000 $34,500 $23,000 20% of your $46,001 - $50,000 $34,501 - $37,500 $23,001 - $25,000 contribution 10% of your $50,001 - $76,500 $37,501 - $57,375 $25,001 - $38,250 contribution 0% of your more than $76,500 more than $57,375 more than $38,250 contribution(a) Erica and John are married filing jointly. They have two children who are their dependents. During the year, Erica contributed $2,500 to a 401(k) and John contributed $900 to an IRA. Their AGI is $48,000. Their tax lability, before considering any potential tax credits, is $200. (a) Jane 1s single. She has one child who 1s her dependent. Jane contributed $6.000 to a 401(k) during the year. Her AGI 1s $20,000. Her tax liability, before considering any potential tax credits, is $1,400