Question

Sheri's only source of income for the year is a salary of" $40,000. She is not married and has three dependent children who are not eligible for the child tax credit. Sheri's tax liability is $1,795 before any credits or prepayments are applied. She had $2,000 withheld from her salary. After applying the earned income credit, what is the amount of Sheri's refund?

Answer 1

Answer:

We have the following data:

Explanation:

Sheri´s salary $ 40.000 for the year

Sheri's tax liability is $1,795

Sheri had Withheld $ 2.000

Amount refund = ?  What we need to know!

We make the next operation to get the amount refund

 

$1,837.21.06% x (40,000-18110)=4,610. Max credit  

$6242 -$1632 + 205 overpayment