Question

In 2018 Zach is single with no dependents. He is not claimed as a dependent on...

In 2018 Zach is single with no dependents. He is not claimed as a dependent on another's return. All of his income is for salary and he does not have any FOR AGI deductions. What is his earned income credit zach is 29 years old and his AGI is $16,500

Business   Accounting   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

(1)Earned Income=$16500

(2)Maximum earned income eligible for earned income credit for taxpayers filing as single with no qualifying children= $15270

(3)Earned income eligible for credit= $15270(Lower of (1) and (2))

(4)Earned income credit percentage=7.65%

(5)Earned income credit before phaseout= $1168( (3)×(4) )

(6)Phase out threshold begins at this level of AGI = $8490

(7) AGI(or earned income of greater) in excess of phase out threshold

= $8010( $16500-$8490)

(8)Phase out percentage= 7.65%

(9)Credit phaseout amount = $613 (7)×(8)

(10)Earned income credit after phaseout= (5)-(9)= $1168-$613=$555

(11)Maximum credit amount limited to =$519

So Zach' s earned income credit is lower of (10) and (11) i.e $519

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Required information Skip to question [The following information applies to the questions displayed below.] In 2019,...
Required information Skip to question [The following information applies to the questions displayed below.] In 2019, Zach is single with no dependents. He is not claimed as a dependent on another’s return. All of his income is from salary and he does not have any for AGI deductions. What is his earned income credit in the following alternative scenarios? Use Exhibit 8-10. (Do not round intermediate calculations. Round your final answer to the nearest whole dollar amount. Leave no answer...
This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,950. Last year,...
This year Lloyd, a single taxpayer, estimates that his tax liability will be $11,950. Last year, his total tax liability was $16,300. He estimates that his tax withholding from his employer will be $9,035. a. How much does Lloyd need to increase his withholding by (for the year), in order to avoid the underpayment penalty? b. Zach is 29 years old and his AGI is $10,100. c. Zach is 29 years old and his AGI is $18,600. d. Zach is...
n 2018, Carson is claimed as a dependent on his parent's tax return. Carson's parents provided...
n 2018, Carson is claimed as a dependent on his parent's tax return. Carson's parents provided most of his support. Use Tax Rate Schedule, Dividends and Capital Gains Tax Rates, Estates and Trusts for reference. (Round your final answer to the nearest whole dollar amount.) Question: Carson is 23 years old at year-end. He is a full-time student and earned $14,825 from his summer internship and part-time job. He also received $6,110 of qualified dividend income. What is Carson's Tax...
Compute 2018 taxable income in each of the following independent situations. Click here to access the...
Compute 2018 taxable income in each of the following independent situations. Click here to access the standard deduction table to use if required. a. Drew and Meg, ages 40 and 41, respectively, are married and file a joint return. In addition to four dependent children, they have AGI of $125,000 and itemized deductions of $27,000. AGI $125,000 Less: itemized deductions ??? Taxable income??? b. Sybil, age 40, is single and supports her dependent parents, who live with her. Sybil also...
Cory (31) may not be claimed as a dependent on anyone else's return. His filing status...
Cory (31) may not be claimed as a dependent on anyone else's return. His filing status is single. During the year, he paid $4,200 in qualified student loan interest. His modified adjusted gross income prior to subtracting any deductions is $109,000. If he has no other adjustments to income, what is the maximum amount he may claim for the student loan interest deduction? A. $0 B. $1,667 C. $2,500 D. $4,200
In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided...
In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances? Carson is 23 years old at year-end. He is a full-time student and earned $14,225 from his summer internship and part-time job. He also received $6,000 of qualified dividend income.
Individual Tax Computation. Richard Hartman, age 29, single with no dependents, with a salary of $32,270....
Individual Tax Computation. Richard Hartman, age 29, single with no dependents, with a salary of $32,270. During the year, he received $1,300 interest income from a savings account and a $1,500 gift from his grandmother. At the advice of his father, Richard sold stock he had held as an investment for five years, for a $3,000 gain. He also sustained a loss of $1,000 from the sale of land held as an investment and owned for four months. Richard had...
USE 2018 TAX RULES 7(a). Bob is 17 years old and can be claimed as a...
USE 2018 TAX RULES 7(a). Bob is 17 years old and can be claimed as a dependent by his parents. He has $4,000 of income from a summer job and $2,200 of interest income. What’s his taxable income? (b). Bill is 17 years old and can be claimed as a dependent by his parents. He has $200 of income from an after-school job and $2,200 of interest income. What’s his taxable income? (c). Barry is 17 years old and can...
Danny Liu is 20 years old and claimed as a dependent on his parents’ tax return....
Danny Liu is 20 years old and claimed as a dependent on his parents’ tax return. Assume the taxable year is 2017. Compute Danny’s taxable income if Danny’s only income item was $2,712 interest earned on a certificate of deposit. Compute Danny’s taxable income if Danny had two income items: $2,712 interest earned on a certificate of deposit and $3,276 wages from a part-time job. How would your answers change if Danny were not claimed as a dependent on his...
(United States) In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's...
(United States) In 2019, Carson is claimed as a dependent on his parents' tax return. Carson's parents provided most of his support. What is Carson's tax liability for the year in each of the following alternative circumstances? b. Carson is 23 years old at year-end. He is a full-time student and earned $15,800 from his summer internship and part-time job. He also received $5,700 of qualified dividend income.
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT