Question

Mr. and Mrs. Camarena's AGI (earned income) was $15,410. Their federal income tax withholding was $930. They had no itemized deductions and two dependent children, ages 18 and 19. If Mr. and Mrs. Camarena are entitled to a $4,732 earned income credit, compute their income tax refund. Assume the taxable year is 2019.

Answer 1

Answer: $5,662

Explanation:

In 2019, married couples filling jointly had a standard deduction of $24,400.

Mr. and Mrs. Camarena's AGI of $15,410 is below this and so they will not be taxed as all income below $24,400 for them is not Taxable.

The income tax refund they gain will therefore be just the earned income credit as well as their federal income tax withholding.

= 4,732 + 930

= $5,662