Question

In 2019, Amanda and Jaxon Stuart have a daughter who is 1 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? Use Exhibit 8-10. (Leave no answer blank. Enter zero if applicable.)

rev: 02_29_2020_QC_CS-202942

a. Their AGI is $17,400, consisting of $6,200 of capital gains and $11,200 of wages.

b. Their AGI is $17,400, consisting of $11,200 of lottery winnings (unearned income) and $6,200 of wages.
c. Their AGI is $26,800, consisting of $21,200 of wages and $5,600 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.)     

d. Their AGI is $26,800, consisting of $5,600 of wages and $21,200 of lottery winnings (unearned income). (Round your intermediate calculations to the nearest whole dollar amount.)

e. Their AGI is $11,200, consisting of $11,200 of lottery winnings (unearned income).

    

Answer 1

sl	case	earned income credit	reason
a	Their AGI is $17,400, consisting of $6,200 of capital gains and $11,200 of wages.	$0	since investment income exceeds $3600
b	Their AGI is $17,400, consisting of $11,200 of lottery winnings (unearned income) and $6,200 of wages.	$3526	since total earned income and AGI is less than $46884 and only one qualifying child
c	Their AGI is $26,800, consisting of $21,200 of wages and $5,600 of lottery winnings (unearned income)	$3526	since total earned income and AGI is less than $46884 and only one qualifying child
d	Their AGI is $26,800, consisting of $5,600 of wages and $21,200 of lottery winnings (unearned income).	$3526	since total earned income and AGI is less than $46884 and only one qualifying child
e	Their AGI is $11,200, consisting of $11,200 of lottery winnings (unearned income).	$0	since no earned income included