Calculate Diane's earned income credit using the EIC table in Appendix B.
Chapter3: Tax Formula And Tax Determination; An Overview Of property Transactions
Section: Chapter Questions
Problem 21CE
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Problem 7-6
Earned Income Credit (LO 7.2)
Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2023, Diane's wages are $21,000 and she receives dividend income of $1,200.
| Other Than Joint Filers | Joint Filers | |||
|---|---|---|---|---|
| Qualifying Children |
Phase-out Begins |
Phase-out Ends |
Phase-out Begins |
Phase-out Ends |
| None | $9,800 | $17,640 | $16,370 | $24,210 |
| 1 | 21,560 | 46,560 | 28,120 | 53,120 |
| 2 | 21,560 | 52,918 | 28,120 | 59,478 |
| 3 or more | 21,560 | 56,838 | 28,120 | 63,398 |
Calculate Diane's earned income credit using the EIC table in Appendix B.
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