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: $2995

Explanation: 21.06% * ($40,000 - $20,130) = $4,185.

Max credit $6,935 - $4,185 = $2,750 + $205 overpayment ($2,000 - $1,795).

So, $2,750 + $205 = $2,955.

Answer 2

We have the following data:

Step-by-step 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