Compute Charlotte taxable income

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Problem - Charlotte (age 40) is a surviving spouse and provides all of the support of her four minor children who live with her (all are under age 16). She also maintains the household in which her parents live and furnished 60% of their support. Besides interest on City of Miami bonds in the amount of $5,500, Charlottes father received $2,400 from a part-time job. Charlotte has a salary of $80,000, a short-term capital loss of $2,000, a cash prize of $4,000 from a church raffle, and itemized deductions of $10,500.

a. Compute Charlotte's taxable income.

b. Using the Tax Rate Schedules, calculate the tax liability for Charlotte for 2018.

c. Compute Charlotte's child and dependent tax credit.

Reference no: EM132429623

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