Question

Steve's only source of income for the year is a salary of $24,000. He is not married and has one dependent child who is eligible for the child tax credit. Steve's tax liability is $570 before any credits or prepayments are applied. He had $500 withheld from his salary. After applying the earned income credit, what is Steve's refund or balance due

Answer 1

Answer:

$2,678

Explanation:

Calculation for what is Steve's refund or balance due

Refund or balance due=3461 - [(24,000-18,660)*.1598]

Refund or balance due= 2607-(570-500)

Refund or balance due= $2,678

Therefore Steve's refund or balance due is $2,678