Can you PLEASE help me with these Tax questions? Using 2017 tax law, answer this

Question

Can you PLEASE help me with these Tax questions?

Using 2017 tax law, answer this question about the following scenario. Numbers in parentheses indicate age. Each taxpayer has only the income stated. Unless otherwise stated, each prospective dependent is an unmarried U.S. citizen who does not provide more than half of their own support. In no case will more than one taxpayer attempt to claim the same qualifying child as a dependent. No one other than the persons listed lived in the home.

---------

"Jim (49) and Linda (50) are married and will file a joint return. They have two children, Todd (20) and Traci (15), who both lived with their parents all year. Todd has a part-time job, and Traci is still in high school. Jim and Linda provide more than 50% of the support for both children. Jim’s wages were $26,500; Linda’s wages were $16,805; Todd’s gross income was $3,100; Traci’s was $0. Jim, Linda, Todd, and Traci had health care coverage all year through Jim's employer. Jim and Linda are not claiming any education or retirement savings contribution credits."

What is the amount of Jim and Linda's earned income credit?

---

What is the sum of Jim and Linda's standard deduction and their exemptions?

---

What is the amount of Jim and Linda's taxable income?

---

Tax - income credit, deduction and exemptions

Explanation / Answer

1.

a. Jim and Linda are filing joint return.

b. Traci can be claimed as a qualifying child as she is a dependent unmarried US citizen who is less than 19 years in age and did not provide for more than 50% of the support for herself.

c. Todd cannot be claimed as a qualifying child as he is is under 24 years but not a full time student nor he is permanently disabled.

d. Jim and Linda are filing joint return and they both are US citizens and they are not filing Form 2555/2555-EZ (Foreign Earned Income) and their investment income is 0. They have 1 qualifying child and their Adjusted Gross Income is $43305 ( $ 26,500+ $ 16,805), so they qualify for eaned income credit of $ 301 as per EITCT table.

2.

a.Since Jim and Linda are filing "Married Filing Jointly", their standard deduction is $ 12,700.

b. the personal exemption is $4,050 per person, so the total exemption is $4050*3= $12150.

3.

a. Taxable income is

Jim Income: 26500

Add:Linda income:16805

Less: Standard Deduction: 12700

Less: Personal Exemption: 12150

Taxable income= 18455

4.

Tax = 10% of taxable income of $ 18455 = $ 1845.6

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.