Your client Sam, is 30 years old and single Taxpayer. In 2019, he reported an AGI of $12,000, all from his job as a server at the local café. He is single and has no dependents. What amount of earned income credit may he claim in 2019?
Besides staying below the income thresholds noted above, there are other qualification rules and requirements. Here are the big eligibility rules, but you can also check out our quiz below for a quick read on whether you might qualify for the earned income tax credit in 2019.
As the client Sam is a single taxpayer the maximum amount of earned income tax credit is $ 529.
Number of children |
Maximum earned income tax credit | Max earnings, single or head of household filers |
Max earnings, joint filers |
---|---|---|---|
0 | $529 | $15,570 | $21,370 |
1 | $3,526 | $41,094 | $46,884 |
2 | $5,828 | $46,703 | $52,493 |
3 or more | $6,557 | $50,162 | $55,952 |
Your client Sam, is 30 years old and single Taxpayer. In 2019, he reported an AGI...
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 $4000
1. Lacy is a single taxpayer. In 2019, her taxable income is $40,200. What is her tax liability in each of the following alternative situations? All of her income is salary from her employer. 2. 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 17 years old at year-end and earned $14,825...
Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income. Provide an alternative example of where Sam might have an expense disallowance. Also, explain what actions Sam could take to turn a disallowed expense into a deductible expense.
Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income. Required: 1 - Provide an alternative example of where Sam might have an expense disallowance. 2 - Explain what actions Sam could take to turn a disallowed expense into a deductible expense.
Karen, 28 years old and a single taxpayer, has a salary of $33,000 and rental income of $33,000 for the 2019 calendar tax year. Karen is covered by a pension through her employer. AGI phase-out range for traditional IRA contributions for a single taxpayer who is an active plan participant is $64,000 – $74,000. What is the maximum amount that Karen may deduct for contributions to her traditional IRA for 2019? Note: 6000 isnt working!
EXHIBIT 8-10 2019 Earned Income Credit Table Qualifying Children (1) Maximum Earned Income Eligible for Credit (2) Credit % (3) Maximum Credit (1) × (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 $ 6,920 7.65% $ 529 $14,450 7.65% $21,370 1 10,370 34 3,526 24,820 15.98...
Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income. Required: 1 - How would you explain the tax law related to the deductibility of expenses to Sam? 2 - Why are some expenses not deductible? Provide an example of an expense to support your response.
Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income. Required: 1 - Why are some expenses not deductible? Provide an example of an expense to support your response. 2 - Explain what actions Sam could take to turn a disallowed expense into a deductible expense. 3 - Provide an alternative example of where Sam might have an expense disallowance.
Serena is a 40-year-old single taxpayer. She operates a small business on the side as a sole proprietorship. Her 2018 Schedule C reports net profits of $5,624. Her employer does not offer health insurance. Serena pays health insurance premiums of $7,545 in 2018. Serena also pays long-term care insurance premiums of $600 in 2018. Calculate Serena’s self-employed health care deduction. $____________ Evan participates in an HSA carrying family coverage for himself, his spouse, and two children. In 2018, Evan has...
Your client, Sam, is a small business taxpayer. He is under the impression that every dollar he spends currently related to his business will reduce his taxable income. Required: 1 - Why are some expenses not deductible? Provide an example of an expense to support your response. 2 - Explain what actions Sam could take to turn a disallowed expense into a deductible expense. PS: Please thoroughly answer both questions