Question
In: Accounting
U.S Tax law with 2019 revisions: Problem 7-7 Earned Income Credit (LO 7.2) Margaret and David...
U.S Tax law with 2019 revisions:
Problem 7-7
Earned Income Credit (LO 7.2)
Margaret and David Simmons are married and file a joint income tax return. They have two dependent children, Margo, 5 years old (Social Security number 316-31-4890), and Daniel, who was born during the year (Social Security number 316-31-7894). Margaret's wages are $3,000, and David has wages of $14,000. In addition, they receive interest income of $200 during the year. Margaret and David do not have any other items of income and do not have any deductions for adjusted gross income.
Assuming the Simmons file Form 1040 for 2019, complete Schedule EIC and the Earned Income Credit Worksheet A. Enter amounts as positive numbers.
Click here to view the Earned Income Credit table.
Note: List children from oldest to youngest.
Solutions
ekkarill92 answered 1 year agoRelated Solutions
Earned Income Credit: For each of the following situations, compute the taxpayers’ 2019 earned income credit....
Earned Income Credit:
For each of the following situations, compute the taxpayers’
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What is the impact of tax policies such as the Earned Income Tax
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Consider a simple Earned Income Tax Credit (EITC) that is equal to a subsidy of .40...
Consider a simple Earned Income Tax Credit (EITC) that is equal
to a subsidy of .40 on each dollar earned up to $10,000, then
constant up to earnings of $20,000. Beyond earnings of $20,000 the
credit is phased out at a rate of .50 for each additional dollar
earned.
a. Draw the budget constraint before and after the EITC for a
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year to work and leisure (T=4000). Label...
Suppose that the Earned Income Tax Credit is set up so that a maximum payment of...
Suppose that the Earned Income Tax Credit is set up so that a
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earns $10,000. This payment represents a subsidy of 30 cents for
each additional dollar earned up to $10,000.
Workers earning between $10,000 and $14,000 are eligible for the
maximum payment. Once labor market earnings exceed $14,000,
additional earnings reduce the subsidy by 45 cents for each dollar
earned.
The going wage rate is $10 per hour....
An Earned Income Tax Credit will Select one: A. create only an income effect. B. increase...
An Earned Income Tax Credit will
Select one:
A. create only an income effect.
B. increase the wage rate of some low-wage workers to a rate
which is above the reservation wage.
C. increase the reservation wage of low-wage workers.
D. create only a substitution effect
In 2019, what is the earned income credit allowed Don Andersen, a head of household taxpayer,...
In 2019, what is the earned income credit allowed Don Andersen,
a head of household taxpayer, assuming he has adjusted gross income
of $9,500 (consisting of interest income of $3,500 and earned
income of $6,000? He maintains his household with his daughter.
In 2019, what is the earned income credit allowed Don Andersen, a head of household taxpayer,...
In 2019, what is the earned income credit allowed Don Andersen,
a head of household taxpayer, assuming he has adjusted gross income
of $9,500 and earned income of $5,000? He maintains his household
with his daughter.
1) $2004
2) $2049
3) $2094
4) $0
5) None of the above answers are within $20 (plus or minus) of
the correct answer.
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Select one:
a. all of the above.
b. has increased in recent years.
c. is available to low-income eligible working people.
d. is refundable.
Which tax brings in the greatest share of federal government tax
revenue?
Select one:
a. tariffs
b. federal excise taxes
c. federal personal income tax
d. social security tax
Which of the following is a tool of expansionary fiscal
policy?
Select one:
a. increased taxes.
b. increased government purchases of goods...
20. What is the Government’s policy intent with respect to the earned income tax credit? What...
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determine the amount of the earned income tax credit? (Country
United States)
he Earned Income Tax Credit a)is a welfare program that discourages people from entering the labor...
he Earned Income Tax Credit
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labor force
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c)only applies to families under the poverty level
d)is phased out by 40 cents for every dollar earned above
$18,740
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