Problem 7-6Earned 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 FilersJoint FilersQualifyingChildrenPhase-outBeginsPhase-outEndsPhase-outBeginsPhase-outEndsNone$9,800$17,640 $16,370 $24,210 121,56046,56028,12053,120221,56052,91828,12059,4783 or more21,56056,83828,12063,398Calculate Diane's earned income credit using the EIC table in Appendix B.

The Earned Income Credit (EIC) is a refundable tax credit designed to provide financial assistance…

Answered: Calculate Diane's earned income credit…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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