Hello my name is Pete. I posted my previous question in error byforgetting to...

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Accounting

Hello my name is Pete. I posted my previous question in error byforgetting to mention that I am located in New York State and amrequired to go by those rules and regulations.
Erica Swanson (SSN 376-38-4930), age 46, is a single parent withthree children:
Her biological son, Sean Swanson (age 19) is a part-time collegestudent who works fulltime as a landscaper
Her biological daughter, Brooklyn Swanson (age 14)
Her adopted daughter, Sydney Swanson (age 12)
Although Erica receives child support from her ex-husband, sheprovides more than half of the support of all three children.Although her ex-husband does spend time with the children, Erica istheir custodial parent; all three children have lived with Ericafor the whole year. Erica works as an office manager. Her W-2 from2018 shows the following information:
Gross wages: $39,500
Social security tax withheld: $2,449
Medicare tax withheld: $573
Federal income tax withheld: $3,950
State tax withheld: $819
401(k) contribution: $5,500
In addition, she accrued $950 of taxable interest during theyear. In order to work, Erica has made arrangements for herneighbor, Robin Murphy, to watch the girls after school and duringthe summer. During the year, Erica paid Robin a total of $5,200 forchild care expenses for the two girls (divided evenly). Sean took acouple of classes at the local community college during the year.Erica paid $1,200 for his tuition, fees, and books. His full-timework schedule prohibited him from attending at least half-time.Erica has satisfied the full-year coverage health insurancerequirement under the ACA.
Which filing status should Erica use?
What is the amount of wages that Erica should report on Form1040?
What is the amount of taxable interest that Erica should reporton Form 1040?
What is the amount of Erica's AGI?
How many qualifying dependents does Erica have?
What is the amount of Erica's basic standard deduction?
What is the amount of Erica's additional standard deduction?
How much taxable income does Erica have?
What is Erica's tax liability?
Child and dependent care credit
Amount of qualifying expenses eligible for credit?
Applicable percentage (from table)
Amount of credit?
Education credits
Which education credit does Erica qualify for?
Amount of credit?
Child tax credit (non-refundable)
Number of qualifying children?
Amount of initial credit?
Amount of non-refundable credit?
Additional child tax credit
Amount remaining after non-refundable credit is taken?
IRS limit for refundable portion?
15% of earned income above $2,500?
Allowable refundable child tax credit?
Earned income credit
Does Erica qualify for the earned income credit?
If so, what is the amount of her credit?
Additional amount due (or refund amount)
Will Erica be getting a refund, or does she owe additionaltax?
What is the amount?

Answer & Explanation Solved by verified expert

3.7 Ratings (450 Votes)

1 Which filing status should Erica use Single 2 Amount of wages 34000 395005500 3 Taxable interest 950 4 Amount of AGI 34950 5 Qualifying dependents 2 6 Basic standard deduction 12000 7 Additional See Answer

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Transcribed Image Text

In: AccountingHello my name is Pete. I posted my previous question in error byforgetting to mention...Hello my name is Pete. I posted my previous question in error byforgetting to mention that I am located in New York State and amrequired to go by those rules and regulations.Erica Swanson (SSN 376-38-4930), age 46, is a single parent withthree children:Her biological son, Sean Swanson (age 19) is a part-time collegestudent who works fulltime as a landscaperHer biological daughter, Brooklyn Swanson (age 14)Her adopted daughter, Sydney Swanson (age 12)Although Erica receives child support from her ex-husband, sheprovides more than half of the support of all three children.Although her ex-husband does spend time with the children, Erica istheir custodial parent; all three children have lived with Ericafor the whole year. Erica works as an office manager. Her W-2 from2018 shows the following information:Gross wages: $39,500Social security tax withheld: $2,449Medicare tax withheld: $573Federal income tax withheld: $3,950State tax withheld: $819401(k) contribution: $5,500In addition, she accrued $950 of taxable interest during theyear. In order to work, Erica has made arrangements for herneighbor, Robin Murphy, to watch the girls after school and duringthe summer. During the year, Erica paid Robin a total of $5,200 forchild care expenses for the two girls (divided evenly). Sean took acouple of classes at the local community college during the year.Erica paid $1,200 for his tuition, fees, and books. His full-timework schedule prohibited him from attending at least half-time.Erica has satisfied the full-year coverage health insurancerequirement under the ACA.Which filing status should Erica use?What is the amount of wages that Erica should report on Form1040?What is the amount of taxable interest that Erica should reporton Form 1040?What is the amount of Erica's AGI?How many qualifying dependents does Erica have?What is the amount of Erica's basic standard deduction?What is the amount of Erica's additional standard deduction?How much taxable income does Erica have?What is Erica's tax liability?Child and dependent care creditAmount of qualifying expenses eligible for credit?Applicable percentage (from table)Amount of credit?Education creditsWhich education credit does Erica qualify for?Amount of credit?Child tax credit (non-refundable)Number of qualifying children?Amount of initial credit?Amount of non-refundable credit?Additional child tax creditAmount remaining after non-refundable credit is taken?IRS limit for refundable portion?15% of earned income above $2,500?Allowable refundable child tax credit?Earned income creditDoes Erica qualify for the earned income credit?If so, what is the amount of her credit?Additional amount due (or refund amount)Will Erica be getting a refund, or does she owe additionaltax?What is the amount?