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12 September, 05:43

Karla (25) is unmarried and was a full-time student from January through June. Karla worked part-time but did not provide more than 50% support for herself or her son, Sam (1). Karla and Sam lived with Karla's parents, Ron (48) and Sue (47), the entire year. Karla's wages were $7,204. Ron's wages were $52,013; Sue's wages were $38,750; Sam's income was $350. Karla will allow her parents to claim Sam this year. Karla, Sam, Ron, and Sue had health care coverage all year through Ron's employer. Ron and Sue are not claiming any education or retirement savings contribution credits on their married filing jointly return.

a. What is the sum of Karla's standard deduction and her personal exemptions? b. What is the sum of Ron and Sue's standard deduction and their personal exemptions? c. What is the amount of Karla's earned income credit?

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  1. 12 September, 05:56
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    The answer to the questions are given below. Follow the question and answers to properly understand.

    Explanation:

    a) Karlas standard deduction would be $6350

    her personal exemptions would be $4050

    b) sum of Ron and Sue's standard deduction would be $12700

    their personal exemptions would be $8100

    c) Karla's earned income credit would be $506
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