1) Caroline and Clint are married, have no dependents, and file a joint return in 2013. Use the following selected data to calculate their federal income tax liability.
AMTI $325,000
Regular income tax liability $61,001
AMT tax preferences $107,000
2) Explain the ethical implications where a tax preparer knowingly prepares a return with false information.
3) Joe is 50 years old, unmarried without children, and has earnings during 2012 of $8,000. He is not claimed as a dependent on another taxpayer's return. Does he qualify for the earned income credit? If so, calculate the amount of credit that is available to him.