QUESTION 8 (CHAPTER 12) Please use the tables below to help you calculate 2021 tax liability (or refund) in each of the following independent scenarios. Please assume that a taxpayer who is eligible for the Earned Income Tax Credit will be able to take the maximum credit amount. Also, please use only the two credits below in your calculation. Earned Income Credit (for Single Taxpayers & Head of Household) Tax Year 2021 No. of Children Income at Max Maximum Credit Credit 0 $543 $7,100 $3,618 $10,640 $5,980 $14,950 $6,728 $14,950 1 2 3 or more Credit Rate Phaseout Begins Phaseout Ends $8,880* $15,980* $19,520** $42,158** $19,520** $47,915** $19,520** $51,464** Taxpayers with investment income of more than $3,650 are not eligible for the credit. * Phaseout based on the greater of eared income or AGI. Increase by $5,940 for joint return filers. ** Phaseout based on the greater of earned income or AGI. Increase by $5,950 for joint return filers. Married Filing Jointly Saver's Credit 2021 Single & Married Separate AGI not more than $19,750 $19,751 - $21,500 $21,501 - $33,000 Head of Household 50% of your contribution AGI not more than $39,500 AGI not more than $29,625 20% of your contribution 10% of your $39,501 - $43,000 $29,626 - $32,250 $43,001 - $66,000 $32,251 - $49,500 contribution 0% of your more than $66,000 more than $49,500 more than $33,000 contribution