Question

QUESTION 12 Eva received $58,000 in compensation payments from JAZZ Corp. during 2018. Eva incurred S5,000 in business expenses relating to her work for JAZZ, Corp. JAZZ did not reimburse Eva for any of these expenses. Eva is single and she deducts a standard deduction of $12,000. Assume that Eva is considered to be self-employed. What is her regular income tax QUESTION 13 Trey has two dependents, his two daughters, ages 14 and 17, at year-end. Trey files a joint return with his wife. What amount of child credit will Trey be able to claim for his daughters if his AGI is $422,000 QUESTION 14 Trey has two dependents, his two daughters, ages 10 and 12, at year-end. Trey files a joint return with his wife. What amount of child credit will Trey be able to claim for his daughters if his AGI is $423,000.

Answer 1

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All are individual questions, Although ahave been answered:) Answers are highlighted in yellow: Solution: can be rounded per question requirement Explanation AGI as self employed: Gross Income Less: Deduction for AGI: 50% of Self employment tax-(53000*92.35%)*7.65% AGI Less: Standard deduction Taxable Income Regular Tax liability 12 Answer: $ 4,280 OR: 4280.22 (58000-5000) 53000 3744 49256 12000 37256 $4,280.22 (952.50)+(37256-9525)" 12% 13 & 14) To qualify for child tax credit (CTC), child's age must be under 17 (e.g. 16 or younger) 2018, per child tax credit $2,000 CTC is phaseout $50 per $1000 or fraction in Excess AGI limit. Credit for other Dependent is $500 per person Explanation Excess AGI (422000-400000)-22000/1000- (22*50) 1100 CTC (2000-1100) Credit for Other dependent $500 Total Child Credit Answer: $ 1,400 $ 900 $ 1,400 S 2,850 Excess AGI = (423000-400000)-23000/1000 = (23*50)1150 CTC = (2000*2)-(1150) = $ 2,850