In 2015 Rita is divorced with one child.She has AGI of $19,500 resulting in a federal income tax liability of $225 and an earned income credit of $3,137.She has had $550 of federal income taxes withheld from her pay.Rita will receive a federal income refund of
A)$550.
B)$325.
C)$3,137.
D)$3,462.

Question

Quizplus · Accepted Answer

Rita's total tax credit is $3,137 (earned income credit). Her total federal income tax liability is $225. Therefore, her federal income tax refund is $3,137 - $225 = $2,912. Since she has already had $550 withheld from her pay, the amount she will receive as a refund is $2,912 + $550 = $3,462.

In 2015 Rita Is Divorced with One Child