In 2014 Rita is divorced with one child.She has AGI of $19,500 resulting in a federal income tax liability of $250 and an earned income credit of $3,038.She has had $550 of federal income taxes withheld from her pay.Rita will receive a federal income refund of
A)$550.
B)$300.
C)$3,038.
D)$3,338.

Question

Quizplus · Accepted Answer

Rita's total federal income tax liability ($250) is less than her earned income credit ($3,038), resulting in a refund of the difference between the two ($3,038 - $250 = $2,788). Additionally, she had $550 of federal income taxes withheld, so her total refund will be $2,788 + $550 = $3,338.

In 2014 Rita Is Divorced with One Child