Question

1.)

Carolyn has an AGI of 39900 (all from earned income) two qualifying children and is filing as a head of household. what amount of earned income credit is she entitled to? (use 2018 earned income credit table).

$0

$1243

$3461

$4473

$5716

2.)

Miley, a single taxpayer, plans on reporting $30,100 of taxable income this year (all of her income is from a part-time job). She is considering applying for a second part-time job that would give her an additional $10,400 of taxable income. By how much will the income from the second job increase her tax liability? (Use the tax.rate schedules)

1040

1248

1428

2294

3.)

0

2240

2880

1830

4.)

21820

20770

9820

9660

Answer 1

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Answers is highlighted in yellow: All four are individual questions. As per policy 1st is answered. Although first two have been answered: Solution: Answer:1) Explanation: 1,243 2019 Amount Explanation Head-of-household: Particulars Earned Income 39900 Earned income base amount 14290 Earned income credit percentage 40.00% 5,716 (lower of 1 or 2) x 3 Earned income credit before phase-out Phase-out threshold begins at this level of 18660 21240 (39900-18660) AGI or Earned income in excess of Phaseout limit Phase-out percentage 21.06% 4473 (6x 7) Credit phase-out amount 1,243 (4-8 Earned income credit after phase-out Answer:2) Explanation: 1,428 As per Year 2018 tax rate schedule, (38700-30100) 12% $ 1,032 (10400-8600) 22% 396 Increase in Tax liability $ 1,428