Question

Gross Income Exclusions and Deductions for AGI CUMULATIVE PROBLEM 1 (CHAPTERS 1-4) CHAPTERS 1-4) Schedule 3, Schedule EIC, Schedule 8812, and for preparation or computer software application information to prepare Erica Hansen's tax return. Use Form 1040, Schedule 1 schedule EIC, Schedule 8812, and Form 8880. This problem is suitable for manual 19 Sunset Road, Normal, Illinois 61761. She Erica L. Hansen (SSN 376.38-49303 42 is a sinde parent with threes rent with three children. She resides at Sad, Normal, Illinois 61761. She chooses to support the Presidential campaign fund. usehold includes Randall L. Hansen, her 19-year-old son (SSN 369-62-3418), Tiffany A. Hansen, her 12-year-old daughter (SSN 396-30-6439), and Donna M. 19) and Donna M. Hansen, her 14-year-old daughter (SSN 653-29-8177) Frimanoides over half of the support of Donna has no income of her own, but Randall sho income of her own, but Randall earns $4.200 during the year delivering papers ng lawns. All children lived in the houschald for 12 months. Randall is a full-time student at Heartland College in Normal, Illinois. works as an office manager for Universal Development Corporation. Information from her W-2, as well as other relevant information follows. Gross wages $39.500 Social security tax withheld 2,449 Medicare tax withheld 573 Federal income tax withheld 819 State income tax withheld Interest received: First Federal Savings Bank $775 Olympic Savings---certificate of deposit cashed in 175 State of Maryland bonds 300 Erica gets her family health care coverage through her work. Erica is a participant in an employer-sponsored retirement plan. However, she wants to make the largest possible deductible contribution to her traditional IRA. If Erica has overpaid her taxes, she prefers to receive a refund. She signs and dates her return on April 5, 2019. Retirement Savings Contributions Credit: Compute the amount of the credit using the information presented in 204.06. EIC Calculation: Look up the amount in the EIC Tables for both earned income and AGI. Additional Child Tax Credit: Enter on Schedule 8812 (line 1) $1,400 for each qualifying child.

Answer 1

Computationa of Taxable income and Tax

Gross Wages $ 39500

Interest received on saving Bank $775

Interest on Olympic saving deposit $ 175

Interest on Maryland bond $ 300

Randall's income $4200

Total Gross Income = $ 44950

Less : retirement saving contribution credit = $ 204.06

Additional child Tax credit = 1000

EITC = $ 3526

Net Taxable income = $ 40220

Tax on Taxable income = (9700*10% +29775*12% + 745*22%)

= $ 3573