Let's prepare the **2024 Form 1040** and **Schedule 8812** for the Hernandez family using the information provided. --- # Step 1: Basic Information **Names:** Jose Hernandez (SSN: 412-34-5670, DOB: 4/23/1974) Dora Hernandez (SSN: 412-34-5671, DOB: 7/12/1979) **Address:** 32010 Lake Street, Atlanta, GA 30294 **Filing Status:** Married Filing Jointly **Presidential Election Campaign:** Yes, both wish to contribute. --- # Step 2: Income Wages, salaries, tips: - Jose: $46,200 - Dora: $32,015 Interest income (1099-INT): $375 **Total Income:** $46,200 + $32,015 + $375 = **$78,590** --- # Step 3: Adjusted Gross Income (AGI) No adjustments given. **AGI:** $78,590 --- # Step 4: Standard Deduction For Married Filing Jointly (2024): **$29,200** (per IRS draft numbers; adjust if final number differs) **Taxable Income:** $78,590 - $29,200 = **$49,390** --- # Step 5: Tax Computation Let's use the 2024 tax brackets for Married Filing Jointly: - **10%** on first $23,200: $2,320 - **12%** on $23,201 to $94,300: $49,390 - $23,200 = $26,190 taxed at 12% = **$3,142.80** **Total tax before credits:** $2,320 + $3,142.80 = **$5,462.80** --- # Step 6: Child Tax Credit - Qualifying child: Adela (age 5) - Credit per child under 17: $2,000 **Total Child Tax Credit:** $2,000 --- # Step 7: Tax after Credits $5,462.80 (tax) - $2,000 (CTC) = **$3,462.80** --- # Step 8: Federal Income Tax Withheld - Jose: $4,038 - Dora: $2,290 **Total withholding:** $6,328 --- # Step 9: Refund $6,328 (withheld) - $3,462.80 (tax due) = **$2,865.20 refund** --- # Step 10: Schedule 8812 Only one qualifying child, under 17, all requirements met. --- ## **2024 Form 1040 (Summary)** **Filing Status:** Married Filing Jointly **Presidential Election:** Both boxes checked **Dependents:** Adela (SSN: 412-34-5672, DOB: 3/15/2019, Daughter, Child Tax Credit: Yes) | Line | Amount | |------------------------------- |--------------------| | 1. Wages | $78,215 | | 2. Interest | $375 | | 3. Total Income | $78,590 | | 4. AGI | $78,590 | | 5. Standard Deduction | $29,200 | | 6. Taxable Income | $49,390 | | 7. Tax | $5,462.80 | | 8. Child Tax Credit | $2,000 | | 9. Tax after credits | $3,462.80 | | 10. Federal tax withheld | $6,328 | | 11. Refund | $2,865.20 | --- ## **2024 Schedule 8812 (Summary)** - Part I: 1 qualifying child under 17 = $2,000 - No additional child tax credit (since nonrefundable portion covers tax owed) --- # **Filled Example: Form 1040 (2024)** **(Not a fillable IRS form, but for exam/homework purposes, here's the layout)** **Form 1040 (2024):** | Line | Description | Amount | |----------|---------------------------------------------|-----------------------| | 1 | Wages, salaries, tips | $78,215 | | 2b | Taxable interest | $375 | | 9 | Total income | $78,590 | | 11 | Adjusted gross income (AGI) | $78,590 | | 12 | Standard deduction | $29,200 | | 15 | Taxable income | $49,390 | | 16 | Tax | $5,462.80 | | 19 | Child tax credit | $2,000 | | 24 | Total tax | $3,462.80 | | 25d | Federal income tax withheld | $6,328 | | 34 | Refund | $2,865 | | 35 | Amount you owe (if applicable) | (Leave blank) | **Schedule 8812 (2024):** - Part I, Line 5: Number of qualifying children under age 17: 1 - Line 12: $2,000 --- ## **Key Points** - Both contribute to the Presidential Election Campaign Fund (check both boxes). - No virtual currency involvement. - No additional credits or income. - All child tax credit used as a nonrefundable credit. --- **If you need actual IRS form screenshots or more detailed line-by-line entries, let me know!**

**Introduction** Taxation calculations involving individual income tax return preparation require a thorough understanding of various tax components, including gross income, allowable deductions, tax credits, and additional contributions such as political campaign contributions. The process begins with aggregating all sources of income, subtracting applicable standard or itemized deductions to determine taxable income, and then applying the relevant tax brackets to compute the preliminary tax liability. Subsequently, tax credits such as the Child Tax Credit (CTC) are deducted to arrive at the net tax owed or refund due. Specific credits and contributions, including contributions to the Presidential Election Campaign Fund, influence both the calculation of credits and the selection of entries on the tax forms. Understanding these concepts is essential to accurately compute the tax liability and complete the necessary IRS forms. **Explanation:** This introduction provides the foundational concepts necessary for understanding how to approach the tax calculation process. It highlights the importance of income aggregation, deductions, and credits, which are central to tax computation. Recognizing how contributions to the Presidential Election Campaign Fund affect form entries ensures compliance and correct reporting. This contextual framework is crucial to grasp the subsequent detailed calculations and form preparations. --- **Relevant Formulas Required To Solve The Question** 1. **Total Income Calculation:** \[ \text{Total Income} = \text{Wages} + \text{Interest Income} + \text{Other Income} \] *This sums all sources of taxable income.* 2. **Adjusted Gross Income (AGI):** \[ \text{AGI} = \text{Total Income} - \text{Adjustments} \] *In absence of adjustments, AGI equals total income.* 3. **Taxable Income:** \[ \text{Taxable Income} = \text{AGI} - \text{Standard Deduction (or Itemized Deductions)} \] *Determines the income subject to tax.* 4. **Tax Calculation Using Marginal Tax Brackets:** \[ \text{Tax} = \sum_{i} (\text{Taxable Amount in Bracket}_i \times \text{Tax Rate}_i) \] *Calculates total tax based on progressive tax brackets.* 5. **Child Tax Credit Application:** \[ \text{Tax After Credits} = \text{Tax} - \text{Child Tax Credit} \] *Reduces tax liability by the child tax credit.* 6. **Refund or Amount Owed:** \[ \text{Refund} = \text{Federal W/H} - \text{Tax Due} \] *Calculates the refund if withholding exceeds tax owed.* 7. **Contribution to Presidential Election Campaign Fund:** - Both boxes on Form 1040 are checked if contributing. **Explanation:** These formulas serve as the mathematical backbone for determining taxable income, calculating the tax liability, applying credits, and establishing the final refund or amount owed. Each formula corresponds to a specific step in the tax calculation process, ensuring accuracy and compliance with IRS rules. --- **Step-by-Step Detailed Solution** **Step 1: Calculate Total Income** \[ \text{Wages (Jose)} = \$46,200 \\ \text{Wages (Dora)} = \$32,015 \\ \text{Interest Income} = \$375 \\ \text{Total Income} = 46,200 + 32,015 + 375 = \boxed{\$78,590} \] *Supporting Explanation:* Adding all sources of income provides the gross income figure necessary for subsequent deductions and tax calculations. --- **Step 2: Determine Adjusted Gross Income (AGI)** No adjustments are specified; thus, \[ \text{AGI} = \text{Total Income} = \boxed{\$78,590} \] *Supporting Explanation:* In the absence of adjustments (such as IRA contributions or student loan interest), AGI remains equal to total income, simplifying the calculation process. --- **Step 3: Calculate Standard Deduction and Taxable Income** For 2024, the standard deduction for Married Filing Jointly is assumed to be **$29,200** (confirm with IRS final figures). \[ \text{Taxable Income} = 78,590 - 29,200 = \boxed{\$49,390} \] *Supporting Explanation:* Subtracting the standard deduction from AGI yields the taxable income, the amount upon which tax rates are applied. --- **Step 4: Compute Preliminary Tax Liability Using Tax Brackets** Using the 2024 IRS tax brackets for Married Filing Jointly: - 10% on first $23,200: \[ 23,200 \times 0.10 = \$2,320 \] - 12% on remaining income (\$49,390 - \$23,200 = \$26,190): \[ 26,190 \times 0.12 = \$3,142.80 \] Total tax before credits: \[ \$2,320 + \$3,142.80 = \boxed{\$5,462.80} \] *Supporting Explanation:* Applying progressive tax rates ensures accurate computation of tax liability based on taxable income segments. --- **Step 5: Calculate Child Tax Credit (CTC)** The qualifying child, Adela, is 5 years old, satisfying the age and relationship criteria. \[ \text{Child Tax Credit} = \$2,000 \] *Supporting Explanation:* The CTC reduces the tax liability dollar-for-dollar, directly lowering the amount of tax owed. --- **Step 6: Determine Final Tax Liability After Credits** \[ \text{Tax after credits} = 5,462.80 - 2,000 = \boxed{\$3,462.80} \] *Supporting Explanation:* Subtracting the child tax credit from the initial tax provides the net tax due before considering withholding. --- **Step 7: Calculate Total Federal Income Tax Withheld** \[ 4,038 (\Jose) + 2,290 (\Dora) = \boxed{\$6,328} \] *Supporting Explanation:* Total withholding is the sum of taxes already paid through payroll withholding, which impacts the refund calculation. --- **Step 8: Determine Refund or Amount Owed** \[ \text{Refund} = 6,328 - 3,462.80 = \boxed{\$2,865.20} \] Since withholding exceeds tax liability, the family receives a refund of approximately **$2,865.20**. *Supporting Explanation:* The difference indicates the overpayment, which the IRS refunds. --- **Step 9: Prepare the Form 1040 and Schedule 8812** - **Form 1040:** - Check the Married Filing Jointly box. - Check the box for contributing to the Presidential Election Campaign. - Enter total income, deductions, tax, credits, and withholding as calculated. - Report the child as a dependent, with the Child Tax Credit claimed. - **Schedule 8812:** - Part I, Line 5: 1 qualifying child under age 17. - Line 12: $2,000 Child Tax Credit. *Supporting Explanation:* Completing these forms accurately reflects the computations, credits, and contributions, ensuring compliance with IRS reporting requirements. --- ## **Conclusion** The final tax liability for the Hernandez family, accounting for income, standard deduction, tax brackets, and child tax credit, is approximately **$3,462.80**. Their total federal withholding of $6,328 results in a refund of about **$2,865.20**. Both contribute to the Presidential Election Campaign Fund. This comprehensive calculation ensures precise completion of Form 1040 and Schedule 8812, aligning with IRS rules and the provided data. --- **Note:** All figures are based on the provided information and standard deduction estimates for 2024; actual figures should be verified with the IRS final guidelines.