FINANCIAL ACCOUNTING
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ISBN: 9781259964947
Author: Libby
Publisher: MCG
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![EXHIBIT 8-11 2021 Earned Income Credit Table
(4)
(1)
(3)
Maximum Earned
Credit Phase-Out for
AGI (or earned income
Income Eligible
Maximum
Credit
Qualifying
Children
(2)
if greater) Over This
Amount
for Credit
Credit %
(1) × (2)
Married taxpayers filing joint returns
01100
11 LIS
0
$9,820
15.3%
$1.502
$14,820
1
10,640
34
3,618
25,470
15.98
2
14,950
40
5,980
25,470
21.06
3+
14.950
45
6.728
25,470
21.06
All taxpayers except married taxpayers filing joint returns
ORD CHIT EL
0
$9,820
15.3%
$ 11,610
$1.502
3,618
1
10,640
34
19,520
2
14.950
40
5,980
19,520
3+
14,950
45
6,728
19.520
Source: Internal Revenue Code. "Rev. Proc. 2020-45. " www.irs.gov.
SI DU
નવીura વ
(5)
Phase-Out
Percentage
15.3%
15.3%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,637
48,108
53,865
57,414
$21,427
42,158
47,915
51.464](https://content.bartleby.com/qna-images/question/e3f6c889-a75c-4371-a5c1-ff1949d4fdf5/8b836fd8-89ed-439a-a501-7dc3b71bed9e/y3gjee_processed.jpeg)
Transcribed Image Text:EXHIBIT 8-11 2021 Earned Income Credit Table
(4)
(1)
(3)
Maximum Earned
Credit Phase-Out for
AGI (or earned income
Income Eligible
Maximum
Credit
Qualifying
Children
(2)
if greater) Over This
Amount
for Credit
Credit %
(1) × (2)
Married taxpayers filing joint returns
01100
11 LIS
0
$9,820
15.3%
$1.502
$14,820
1
10,640
34
3,618
25,470
15.98
2
14,950
40
5,980
25,470
21.06
3+
14.950
45
6.728
25,470
21.06
All taxpayers except married taxpayers filing joint returns
ORD CHIT EL
0
$9,820
15.3%
$ 11,610
$1.502
3,618
1
10,640
34
19,520
2
14.950
40
5,980
19,520
3+
14,950
45
6,728
19.520
Source: Internal Revenue Code. "Rev. Proc. 2020-45. " www.irs.gov.
SI DU
નવીura વ
(5)
Phase-Out
Percentage
15.3%
15.3%
15.98
21.06
21.06
No Credit When AGI
(or earned income if
greater) Equals or
Exceeds This Amount
(4) + [(3)/(5)]
$24,637
48,108
53,865
57,414
$21,427
42,158
47,915
51.464
Transcribed Image Text:In 2021, Lucy and Evan Stuart have a daughter who is 2 years old. The Stuarts are full-time students and they are both: 24 years old
Their AGI is $18,000, consisting of $10,100 of lottery winnings (unearned income) and $7,900 of wages. What is their earned income
credit if they file jointly? Use Exhibit 8-11 (Leave no answer blank. Enter zero if applicable.)
HAN
Earned Income credit
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