Madison, who is divorced, files as head of household. She has four dependent minor children, whom she supports. Madison's earned income for the current year is $39,000. In addition, she paid $4,000 alimony to her ex-husband in accordance with a pre-2019 divorce decree. ?

Carry out computations to two decimal places, and round your final answer to the nearest dollar.

Enter the amount of Madison's earned income credit based on the table below:

Transcribed Image Text:

EXHIBIT 13.2 Earned Income Credit and Phaseout Percentages Tax Year Number of Qualifying Children 2019 Married, Filing Jointly No children One child Two children Three or more children Other Taxpayers No children One child Two children Three or more children 2018 Married, Filing Jointly No children One child Two children Three or more children Other Taxpayers No children One child Two children Three or more children Earned Income Base Amount $ 6,920 10,370 14,570 14,570 $ 6,920 10,370 14,570 14,570 $ 6,780 10,180 14,290 14,290 $ 6,780 10,180 14,290 14,290 Credit Percentage 7.65 34.00 40.00 45.00 7.65 34.00 40.00 45.00 7.65 34.00 40.00 45.00 7.65 34.00 40.00 45.00 Maximum Phaseout Credit Base $ 529 3,526 5,828 6,557 $ 529 3,526 5,828 6,557 $ 519 3,461 5,716 6,431 $ 519 3,461 5,716 6,431 $14,450 24,820 24,820 24,820 $ 8,650 19,030 19,030 19,030 $14,170 24,350 24,350 24,350 $ 8,490 18,660 18,660 18,660 Phaseout Percentage 7.65 15.98 21.06 21.06 7.65 15.98 21.06 21.06 7.65 15.98 21.06 21.06 7.65 15.98 21.06 21.06 Phaseout Ends at Income of $ 21,370 46,884 52,493 55,952 $ 15,570 41,094 46,703 50,162 $ 20,950 46,010 51,492 54,884 $ 15,270 40,320 45,802 49,194 EXHIBIT 13.2 Earned Income Credit and Phaseout Percentages Tax Year Number of Qualifying Children 2019 Married, Filing Jointly No children One child Two children Three or more children Other Taxpayers No children One child Two children Three or more children 2018 Married, Filing Jointly No children One child Two children Three or more children Other Taxpayers No children One child Two children Three or more children Earned Income Base Amount $ 6,920 10,370 14,570 14,570 $ 6,920 10,370 14,570 14,570 $ 6,780 10,180 14,290 14,290 $ 6,780 10,180 14,290 14,290 Credit Percentage 7.65 34.00 40.00 45.00 7.65 34.00 40.00 45.00 7.65 34.00 40.00 45.00 7.65 34.00 40.00 45.00 Maximum Phaseout Credit Base $ 529 3,526 5,828 6,557 $ 529 3,526 5,828 6,557 $ 519 3,461 5,716 6,431 $ 519 3,461 5,716 6,431 $14,450 24,820 24,820 24,820 $ 8,650 19,030 19,030 19,030 $14,170 24,350 24,350 24,350 $ 8,490 18,660 18,660 18,660 Phaseout Percentage 7.65 15.98 21.06 21.06 7.65 15.98 21.06 21.06 7.65 15.98 21.06 21.06 7.65 15.98 21.06 21.06 Phaseout Ends at Income of $ 21,370 46,884 52,493 55,952 $ 15,570 41,094 46,703 50,162 $ 20,950 46,010 51,492 54,884 $ 15,270 40,320 45,802 49,194

Answer rating: 100% (QA)

Answer is highlighted in yellow As per tax year 201... View the full answer