Question: Check my work 9 7 points eBook References Determine the amount of the Earned Income Credit in each of the following cases. Assume that the
Check my work 9 7 points eBook References Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible to take the credit. Use Table 9-3. Required: Calculate the credit using the formulas. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Earned Income Credit a. A single person with earned income of $5,150 and no qualifying children. $ 1,502 b. A single person with earned income of $24,500 and two qualifying children. $ 5,160 c. A married couple filing jointly with earned income of $36,390 and one qualifying child. 5,815 TABLE 9-3* Earned Income Credit Tax Year 2021 EIC percentage For earned income up to Maximum EIC Phaseout percentage Number of Eligible Children One 34.0% None 15.30% $ 9,820 $ 10,640 $ 1,502 15.30% $ 3,618 15.98% Two Three or More 40.0% $ 14,950 $ 5,980 21.06% 45.0% $14,950 $ 6,728 21.06% For joint filers: Phaseout starts at earned income of $ 17,560 $ 25,470 $ 25,470 $ 25,470 Phaseout ends at earned income of $ 27,380 $ 48,108 $53,865 $ 57,414 For all other filers: Phaseout starts at earned income of $ 11,610 $ 19,520 $ 19,520 $ 19,520 Phaseout ends at earned income of $ 21,430 $ 42,158 $ 47,915 $51,464 * The dollar amounts in the table are subject to annual adjustments for inflation
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
