Answer Happy

In 2022, 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 8-11. Note: Leave no answer blank. Enter zero if applicable. Required: a. Their AGI is $15,600, consisting of $12,300 of capital gains and $3,300 of wages. b. Their AGI is $15,600, consisting of $10,100 of lottery winnings (unearned income) and $5,500 of wages. c. Their AGI is $28,150, consisting of $23,100 of wages and $5,050 of lottery winnings (unearned income). Note: Round your intermediate calculations to the nearest whole dollar amount. d. Their AGI is $28.150, consisting of $5,050 of wages and $23,100 of lottery winnings (unearned income). Note: Round your intermediate calculations to the nearest whole dollar amount. e. Their AGI is $10100, consisting of $10,100 of lottery winnings (unearned income).

EXHIBIT S-11 2022 Earned Income Credit Table Qualifying Children 0 1 2 3+ 0 1 (1) Maximum Earned Income Eligible for Credit 2 34 $7,320 10,980 15,410 15,410 (2) Credit % (3) Maximum Credit (1) × (2) 7.65% 34 40 45 $7,320 10,980 15,410 15,410 Source: Internal Revenue Code. "Rev. Proc. 2020-45." www.irz.gov (4) Credit Phase-Out for AGI (or earned income if greater) Over This Amount Married taxpayers filing joint returns $15,290 26,260 $560 3.733 6,164 6,935 All taxpayers except married taxpayers filing joint returns 7.65% $560 34 40 45 3,733 6,164 6,935 26,260 26,260 (5) Phase-Out Percentage $9,160 20,130 20,130 20,130 7.65% 15.98 21.06 21.06 15.30% 15.98 21.06 21.06 No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4)+ [(3)/(5)] $22,610 49,622 55,529 59,187 $16,480 43,492 49,399 53,057