Chapter 12

32.a. Thomas is non desirable for the earned income trust because he does non experience a passage tiddler and is not between the ages of 25 and 64. b.Shannon is eligible for the earned income commendation because she has a qualifying child. As her earned income and AGI ar infra the income sprout aim where the earned income consultation begins to phase out ($16,690 in 2011), Shannon pass on qualify for the supreme earned income reliance. c.Keith and Susan are not eligible for the earned income credit because they do not have a qualifying child, and their income exceeds the disqualifying threshold for the credit that is available when in that location is not a qualifying child ($18,740 in 2011). d. charge though Colin does not have a qualifying child, he is eligible for the earned income credit because he is between 25 and 64 years of age, cannot be claimed as a capable on another levypayers return, and has earnings below the level at which the credit is alone phased out ($13,660 in 2011). pp. 12-15 and 12-16 37.a.Durell and Earline whitethorn only claim the child impose credit for their ii children, ages 5 years and 6 months. The full amount of the child revenue enhancement credit is available for qualifying children born during the tax year. Although Earlines boy from a previous marriage is claimed as a dependent, he is not eligible for the child tax credit since he is not under age 17.

Since Durell and Earlines combined AGI is below $110,000, their child tax credit is $2,000 ($1,000 × 2). b.Since Durell and Earlines combined AGI exceeds $110,000, the maximum child tax cr edit of $2,000 essential be reduced. The cr! edit reduction is computed as $50 for apiece $1,000 of AGI or reckon thereof exceeding the threshold amount. AGI $122,000 threshold amount (110,000) overplus $ 12,000 $12,000? $50 = $600 reduction. $1,000 Durell and Earlines child tax credit is $1,400 ($2,000 maximum credit $600 reduction) for the year. p. 12-20 and Example 28 38.For two or more children, the maximum...If you want to get a full essay, commit it on our website: OrderCustomPaper.com

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