Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her (all are under age 16). She also maintains the household in which her parents live and furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlotte's father received $2,400 from a part-time job. Charlotte has a salary of $80,000, a short-term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500.FILING STATUS20192020Single12,20012,400Married, Filing Jointly24,40024,800Surviving spoise24,40024,800Head of Household18,35018,650Married, Filing Seperate12,20012.400A. a. Compute Charlotte's taxable income.B b. Using the Tax Rate Schedules (See attached), tax liability (before any allowable credits) for Charlotte is $ *Blank* for 2020.C. c. Compute Charlotte's child and dependent tax credit.Charlotte's child tax credit is $ ________, of which $ __________ may be refundable and her dependent tax credit is $ ______ of which $ 0 may be refundable. 2020 Tax Rate SchedulesSingle-Schedule XIf taxableBut notincome is:Over-of theamountover-over-The tax is:$0$ 9,875.........10%9,87540,125$ 987.50 +12%9,87540,12585,5254,617.50 +22%40,12585,525163,30014,605.50 +24%85,525163,300207,35033,271.50 + 32%163,300207,350518,40047,367.50+ 35%207,350518,400156,235.00 +37%518,400Married filing jointly or Qualifying widow(er)-Schedule Y-1If taxableincome is:But notof theamountover-Over-over-The tax is:$0$ 19,750.........10%019,75080,250$ 1,975.00 + 12%19,75080,250171,0509,235.00 +22%80,250171,050326,60029,211.00 +24%171,050326,600414,70066,543.00 +32%326,600414,700622,05094,735.00 + 35%414,700622,050167,307.50 + 37%622,050$$Head of household-Schedule ZIf taxableincome is:Over-But notover-The tax is:$0$ 14,100.10%14,10053,700$ 1,410.00 + 12%53,70085,5006,162.00 +22%85,500163,30013,158.00 +24%163,300207,35031,830.00 + 32%207,350518,40045,926.00 + 35%518,400154,793.50 + 37%Married filing separately-Schedule Y-2If taxableBut notincome is:Over-over-The tax is:$0$ 9,8759,87540,125.........10%987.50 +12%4,617.50 +22%40,12585,52585,525163,30014,605.50 +24%163,300207,35033,271.50 + 32%207,350311,02547,367.50 + 35%311,02583,653.75 + 37%$of theamountover-$014,10053,70085,500163,300207,350518,400of theamountover-09,87540,12585,525163,300207,350311,025$

As she is a surviving spouse she has to use joint filing status for two years. The standard…

Answered: Charlotte (age 40) is a surviving…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her (all are under age 16). She also maintains the household in which her parents live and furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlotte's father received $2,400 from a part-time job. Charlotte has a salary of $80,000, a short-term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500.

FILING STATUS	2019	2020
Single	12,200	12,400
Married, Filing Jointly	24,400	24,800
Surviving spoise	24,400	24,800
Head of Household	18,350	18,650
Married, Filing Seperate	12,200	12.400

A. a. Compute Charlotte's taxable income.

B b. Using the Tax Rate Schedules (See attached), tax liability (before any allowable credits) for Charlotte is $ *Blank* for 2020.

C. c. Compute Charlotte's child and dependent tax credit.
Charlotte's child tax credit is $ ________, of which $ __________ may be refundable and her dependent tax credit is $ ______ of which $ 0 may be refundable.

2020 Tax Rate Schedules
Single-Schedule X
If taxable
But not
income is:
Over-
of the
amount
over-
over-
The tax is:
$
0
$ 9,875
.........10%
9,875
40,125
$ 987.50 +12%
9,875
40,125
85,525
4,617.50 +22%
40,125
85,525
163,300
14,605.50 +24%
85,525
163,300
207,350
33,271.50 + 32%
163,300
207,350
518,400
47,367.50+ 35%
207,350
518,400
156,235.00 +37%
518,400
Married filing jointly or Qualifying widow(er)-
Schedule Y-1
If taxable
income is:
But not
of the
amount
over-
Over-
over-
The tax is:
$
0
$ 19,750
.........10%
0
19,750
80,250
$ 1,975.00 + 12%
19,750
80,250
171,050
9,235.00 +22%
80,250
171,050
326,600
29,211.00 +24%
171,050
326,600
414,700
66,543.00 +32%
326,600
414,700
622,050
94,735.00 + 35%
414,700
622,050
167,307.50 + 37%
622,050
$
$
Head of household-Schedule Z
If taxable
income is:
Over-
But not
over-
The tax is:
$
0
$ 14,100
.10%
14,100
53,700
$ 1,410.00 + 12%
53,700
85,500
6,162.00 +22%
85,500
163,300
13,158.00 +24%
163,300
207,350
31,830.00 + 32%
207,350
518,400
45,926.00 + 35%
518,400
154,793.50 + 37%
Married filing separately-Schedule Y-2
If taxable
But not
income is:
Over-
over-
The tax is:
$
0
$ 9,875
9,875
40,125
.........10%
987.50 +12%
4,617.50 +22%
40,125
85,525
85,525
163,300
14,605.50 +24%
163,300
207,350
33,271.50 + 32%
207,350
311,025
47,367.50 + 35%
311,025
83,653.75 + 37%
$
of the
amount
over-
$
0
14,100
53,700
85,500
163,300
207,350
518,400
of the
amount
over-
0
9,875
40,125
85,525
163,300
207,350
311,025
$

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Follow-up Question

c. Compute Charlotte's child and dependent tax credit.
Charlotte's child tax credit is $8,000, of which $ ______ may be refundable and her dependent tax credit is $1,000 of which $0 may be refundable.

I understand where the $8,000 comes from and the where the $1000 comes from, However the one blank, nothing seems to work, )1000, 500, 2000, etc.)

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