Doyle and Rosie, who filed jointly, are both on active duty. They have two children, Doyle, Jr. (age 4) and Tiara (age 2). In 2022, Doyle earned $20, 000, of which $14, 000 was combat pay. Rosie 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? 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. 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 Doyle's combat pay; 4) using only Rosie's combat pay. Each credit should be figured independently; they do not have to use 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. 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 Doyle's combat pay; 4) using only Rosie's combat pay. Both credits must be calculated using the same income figure.
Doyle and Rosie, who filed jointly, are both on active duty. They have two children, Doyle, Jr. (age 4) and Tiara (age 2). In 2022, Doyle earned $20, 000, of which $14, 000 was combat pay. Rosie 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? 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. 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 Doyle's combat pay; 4) using only Rosie's combat pay. Each credit should be figured independently; they do not have to use 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. 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 Doyle's combat pay; 4) using only Rosie's combat pay. Both credits must be calculated using the same income figure.
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