In 2020, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are

Question:

In 2020, 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 $28,000, consisting of $23,000 of wages and $5,000 of lottery winnings (unearned income).

d. Their AGI is $28,000, consisting of $5,000 of wages and $23,000 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:

Answer rating: 80% (5 reviews)

a 0 earned income credit Based on 32i taxpayers with investment income in excess of 3650 are not eligible for the earned income credit Because capital ...View the full answer

Answered By

Asim farooq

I have done MS finance and expertise in the field of Accounting, finance, cost accounting, security analysis and portfolio management and management, MS office is at my fingertips, I want my client to take advantage of my practical knowledge. I have been mentoring my client on a freelancer website from last two years, Currently I am working in Telecom company as a financial analyst and before that working as an accountant with Pepsi for one year. I also join a nonprofit organization as a finance assistant to my job duties are making payment to client after tax calculation, I have started my professional career from teaching I was teaching to a master's level student for two years in the evening. My Expert Service Financial accounting, Financial management, Cost accounting, Human resource management, Business communication and report writing. Financial accounting : • Journal entries • Financial statements including balance sheet, Profit & Loss account, Cash flow statement • Adjustment entries • Ratio analysis • Accounting concepts • Single entry accounting • Double entry accounting • Bills of exchange • Bank reconciliation statements Cost accounting : • Budgeting • Job order costing • Process costing • Cost of goods sold Financial management : • Capital budgeting • Net Present Value (NPV) • Internal Rate of Return (IRR) • Payback period • Discounted cash flows • Financial analysis • Capital assets pricing model • Simple interest, Compound interest & annuities

4.40+ 65+ Reviews 86+ Question Solved

Related Book For answer-question

Taxation Of Individuals And Business Entities 2021

ISBN: 9781260247138

12th Edition

Authors: Brian Spilker, Benjamin Ayers, John Barrick, Troy Lewis, John Robinson, Connie Weaver, Ronald Worsham

See More Books

Question Posted: Dec 28, 2020 03:08 AM

See More Questions

In 2020, Amanda and Jaxon Stuart have a daughter who is one year old. The Stuarts are

Question:

Step by Step Answer:

a 0 earned income credit Based on 32i taxpayers with investment income in excess of 3650 are not eligible for the earned income credit Because capital ...View the full answer

Taxation Of Individuals And Business Entities 2021

Students also viewed these Business questions