problems and answers for Income Tax MidTerm.docx - 13 On...

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# 13 On the Practice Exam mr and mrs cruz have two dependents children ages 2 and 4. Mr Cruz has wages of $24,500 during the year, while mrs cruz was a fulltime student from january through august. the cruzes paid playtime nursery $600 per month for the entire year. The cruzes's maximum allowable credit for childcare is?Module 3 Quiz # 13Hank is a single taxpayer who earned $31,896 in wages and $11,724 of Social Security benefits. How much of Hank’s Social Security benefits are taxable?
Less: base amount (25,000) a First excess 12,758 b Less: second base (9,000) Second excess 3,758 c Smaller of two a,b 9,000 d 50% of c 4,500 e Smaller of d and 50%SS 4,500 f × 85% of second excess 3,194 g Add e,f 7,694 h 85% of SS 9,965 min(g,h) Taxable benefits 7,694 Answer is: 7,694 Module 3 Quiz # 15

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