In 2023, Amanda and Jaxon Stuart have a daught
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Required information
[The following information applies to the questions displayed below.)
In 2023, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and 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
Note: Leave no answer blank. Enter zero if applicable.
c. Their AGI is $30,000, consisting of $23,000 of wages and $7,000 of lottery winnings (unearned income).
Note: Round your intermediate calculations to the nearest whole dollar amount.
Eamed income credit
![EXHIBIT 8-10 2023 Earned Income Credit Table
Qualifying
Children
0
1
2
34
0
1
2
3+
(1)
Maximum Earned
Income Eligible
for Credit
$7,840
11,750
16,510
16,510
(2)
Credit %
7.65%
34
40
45
(3)
Maximum
Credit
(1) x (2)
Married taxpayers filing joint returns
$16,370
28,120
28,120
28,120
(4)
Credit Phase-Out for
AGI (or earned income
if greater) over This
Amount
$ 600
3,995
6,604
7,430
7.65%
34
40
45
$7,840
11,750
3,995
16,510
6,604
16,510
7,430
Source: Internal Revenue Code. "Rev. Proc. 2022-38." www.irs.gov
All taxpayers except married taxpayers filing joint returns
$ 600
(5)
Phase-Out
Percentage
$9,800
21,560
21,560
21,560
7.65%
15.98
21.06
21.06
7.65%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,210
53,120
59,478
63,398
$17,640
46,560
52,918
$56,838](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fc27bb89b-08c3-4e57-a5d7-e6f3e9d791fd%2F058fe583-d548-41a9-8911-17dde2423045%2Fyi6xb5_processed.jpeg&w=3840&q=75)
Transcribed Image Text:EXHIBIT 8-10 2023 Earned Income Credit Table
Qualifying
Children
0
1
2
34
0
1
2
3+
(1)
Maximum Earned
Income Eligible
for Credit
$7,840
11,750
16,510
16,510
(2)
Credit %
7.65%
34
40
45
(3)
Maximum
Credit
(1) x (2)
Married taxpayers filing joint returns
$16,370
28,120
28,120
28,120
(4)
Credit Phase-Out for
AGI (or earned income
if greater) over This
Amount
$ 600
3,995
6,604
7,430
7.65%
34
40
45
$7,840
11,750
3,995
16,510
6,604
16,510
7,430
Source: Internal Revenue Code. "Rev. Proc. 2022-38." www.irs.gov
All taxpayers except married taxpayers filing joint returns
$ 600
(5)
Phase-Out
Percentage
$9,800
21,560
21,560
21,560
7.65%
15.98
21.06
21.06
7.65%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,210
53,120
59,478
63,398
$17,640
46,560
52,918
$56,838
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