JoPh
Diamond Member
does anyone have those tax software programs and can enter this in for me?
im trying to do it by hand on the 1040 but i have no idea what im doing.
1. Alice is a divorced woman with two children (for whom she can claim exemptions) and no alimony, who made $33,000 in 2004 in a factory job. Her only other income for the year was $1,250 in interest on her savings account. Compute her federal income tax for 2004, taking account of the Child Tax Credit (line 51 of Form 1040) and the Earned Income Tax Credit (line 65a of form 1040), and assuming that she files as a head of household and takes the standard deduction.
2. Suppose that Alice had earned an extra $1000 in overtime pay. By how much would her federal income tax have risen? What is Alices effective marginal tax rate?
im trying to do it by hand on the 1040 but i have no idea what im doing.
1. Alice is a divorced woman with two children (for whom she can claim exemptions) and no alimony, who made $33,000 in 2004 in a factory job. Her only other income for the year was $1,250 in interest on her savings account. Compute her federal income tax for 2004, taking account of the Child Tax Credit (line 51 of Form 1040) and the Earned Income Tax Credit (line 65a of form 1040), and assuming that she files as a head of household and takes the standard deduction.
2. Suppose that Alice had earned an extra $1000 in overtime pay. By how much would her federal income tax have risen? What is Alices effective marginal tax rate?
