Question

Hello my name is Pete. I am looking to improve in this class and wanted to see if anyone would be able to help me with these questions. Thank you ahead of time. Here is the information.

Erica Swanson (SSN 376-38-4930), age 46, is a single parent with three children:

Her biological son, Sean Swanson (age 19) is a part-time college student who works fulltime as a landscaper

Her biological daughter, Brooklyn Swanson (age 14)

Her adopted daughter, Sydney Swanson (age 12)

Although Erica receives child support from her ex-husband, she provides more than half of the support of all three children. Although her ex-husband does spend time with the children, Erica is their custodial parent; all three children have lived with Erica for the whole year. Erica works as an office manager. Her W-2 from 2018 shows the following information:

Gross wages: $39,500

Social security tax withheld: $2,449

Medicare tax withheld: $573

Federal income tax withheld: $3,950

State tax withheld: $819

401(k) contribution: $5,500

In addition, she accrued $950 of taxable interest during the year. In order to work, Erica has made arrangements for her neighbor, Robin Murphy, to watch the girls after school and during the summer. During the year, Erica paid Robin a total of $5,200 for child care expenses for the two girls (divided evenly). Sean took a couple of classes at the local community college during the year. Erica paid $1,200 for his tuition, fees, and books. His full-time work schedule prohibited him from attending at least half-time. Erica has satisfied the full-year coverage health insurance requirement under the ACA.

Which filing status should Erica use?

What is the amount of wages that Erica should report on Form 1040?

What is the amount of taxable interest that Erica should report on Form 1040?

What is the amount of Erica's AGI?

How many qualifying dependents does Erica have?

What is the amount of Erica's basic standard deduction?

What is the amount of Erica's additional standard deduction?

How much taxable income does Erica have?

What is Erica's tax liability?

Child and dependent care credit

Amount of qualifying expenses eligible for credit?

Applicable percentage (from table)

Amount of credit?

Education credits

Which education credit does Erica qualify for?

Amount of credit?

Child tax credit (non-refundable)

Number of qualifying children?

Amount of initial credit?

Amount of non-refundable credit?

Additional child tax credit

Amount remaining after non-refundable credit is taken?

IRS limit for refundable portion?

15% of earned income above $2,500?

Allowable refundable child tax credit?

Earned income credit

Does Erica qualify for the earned income credit?

If so, what is the amount of her credit?

Additional amount due (or refund amount)

Will Erica be getting a refund, or does she owe additional tax?

What is the amount?

Answer 1

filing status of Erica

as per us tax laws there are 4 filing status ti file tax returns

• Single.
• Married Filing Jointly.
• Married Filing Separately.
• Head of Household.
• Qualifying Widow(er) with Dependent Childern

As per above mentioned facts Erica can file under Head of Household status

because of following reasons

As per provisions of act

Pay for more than half of the household expenses. Be considered unmarried for the tax year, and. must have a qualifying child or dependent.

she provides more than half of the support of all three children but only two among them are qualifying Dependents

As Qualifying Dependents means

-biological child, stepchild, foster child, sibling, step-sibling, or a descendant of any of these individuals

-child can’t turn 19 at any time during the tax year (age 24 if a full-time student)

as her son is a part time student he is not qualyfing dependent remaining two are qualyfying Children

So she can file under Head of Household status

2.39500 are the gross wages which should be reported in form 1040

3.Taxable interest of erica is $ 950 as stated above

4.The amount of ATI is

Wages 39500+ Taxable interest of 950

=40450

5, As explained above she had two qualyfying children

6. standard deduction for her is 18000 as per the IRS

7.She is not eligible for the additional standard deduction

8. total taxable income is 22450

9.Toatl income Tax is 4659

All the below sub parts are answered above and im not eligible to answer more than this

Thank you