Problem 7-11Child and Dependent Care Credit (LO 7.2, 7.3)Clarita is a single taxpayer that lives in the U.S. with two dependent children, ages 10 and 12. Claritapays $3,000 in qualified child care expenses during the year. If her adjusted gross income (all fromwages) for the year is $21,000 and she takes the standard deduction.Assume that Clarita's earned income is $70,000. Determine the net effect of the additional income onher total credits.

Child and dependent care credit: According to IRS, the person ( who incurred any expenses for the…

Answered: Problem 7-11 Child and Dependent Care…

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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Problem 1-39 (LO 1-3) (Algo) Jorge and Anita, married taxpayers, earn $159,000 in taxable income and $49,000 in interest from an investment in City of Heflin bonds. (Use the U.S. tax rate schedule for married filing jointly.) Required: a. If Jorge and Anita earn an additional $109,000 of taxable income, what is their marginal tax rate on this income? b. What is their marginal rate if, instead, they report an additional $109,000 in deductions? Note: For all requirements, do not round intermediate calculations. Round your answers to 2 decimal places. a. Marginal tax rate b. Marginal tax rate % %
6
Mini Problem 2 Wayne and Wanda are filing MFJ with a 4-year-old dependent child. Wayne worked full time and earned $25,000. Wanda became a full-time student for the fall term (Aug thru Dec) and they have no other income. Their principal place of abode was in the U.S. for the entire tax year. Their federal taxable income was $2,300 and their federal tax liability before any credits is $231. While Wanda was a student, they paid $3,000 for childcare. What is the amount of line 6 from their Form 24417 page Select one: a. $0 b. $231 Ⓒc. $375 O d. $625 Oe. None of these 4 Finish attempt...
A-2
Problem 8 - 70 (LO 8-4) (Algo) Skip to question [The following information applies to the questions displayed below.] Trey has two dependents, his daughters, ages 14 and 18, at year - end. Trey files a joint return with his spouse. What amount of child tax credit (either as a child or a qualifying dependent) will Trey be able to claim in 2023 for his daughters under each of the following alternative situations? Use Exhibit 8 - 8. Problem 8 - 70 Part a (Algo) a. His AGI is $103,300. b. His AGI is $431, 000. EXHIBIT 8 -8 Child Tax Credit Phase - Out Threshold S EXHIBIT 8-8 Child Tax Credit Phase-Out Threshold Filing Status Married filing jointly Married filing separately Head of household and single Phase-Out Threshold $400,000 200,000 200,000
9
Tax form 1040...12a, 12b...how do you compute those numbers 13a, 13b is the child tax credit..is it $3000 for each child and eligible dependent
Problem 7-21 (Algorithmic) Foreign Tax Credit (LO 7.6) Martha and Lew are married taxpayers with $2,000 of foreign tax withholding from dividends in a mutual fund. They have enough foreign income from the mutual fund to claim the full $2,000 as a foreign tax credit. Their tax bracket is 28 percent and they itemize deductions. Should they claim the foreign tax credit or a deduction for foreign taxes on their Schedule A? If required, round your answer to the nearest dollar. The foreign tax deduction will result in a s tax benefit where as claiming the foreign tax credit yields a $ tax benefit. Therefore, the taxpayers should
Problem 6-20 (Algorithmic) Computing the 0.9 Percent Medicare Tax for High-Income Taxpayers (LO 6.8) Married taxpayers Otto and Ruth are both self-employed and file a joint return. Otto earns $380,600 of self-employment income and Ruth has a self-employment loss of $28,700. How much 0.9 percent Medicare tax for high-income taxpayers will Otto and Ruth have to pay with their 2021 income tax return? If required, round your final answer to nearest dollar.
I need help on part b and part d. Thanks.
4
I need help on part c. Thanks.

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