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Martay and Gloria are married; both are on active duty. They have two children, Martay,...

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Accounting

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Martay and Gloria are married; both are on active duty. They have two children, Martay, Jr. (age 4) and Estrelia (age 2). In 2021, Martay earned $20,000, of which $14,000 was combat pay. Gloria earned $24,000, of which $5,000 was combat pay. How would you prepare their return with regard to the Earned Income Tax Credit (EITC) and the Child and Dependent Care Credit? Separately calculate both the EITC and the Child and Dependent Care Credit four ways: 1) using all combat pay; 2) using no combat pay; 3) using only Martay's combat pay; 4) using only Gloria's combat pay. Each credit should be figured independently; they do not have to use the same income figure. Calculate the EITC and the Child and Dependent Care Credit two ways: 1) using all combat pay; 2) using no combat pay. Both credits must be calculated using the same income figure. Calculate the EITC and the Child and Dependent Care Credit four ways: 1) using all combat pay; 2) using no combat pay; 3) using only Martay's combat pay; 4) using only Gloria's combat pay. Both credits must be calculated using the same income figure. Look at the calculation tables for each credit and add as much of the combat pay as needed to get the largest possible refund for the client

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