Carolyn is unmarried and has one dependent child, age 6, who lived with her for the entire

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Carolyn is unmarried and has one dependent child, age 6, who lived with her for the entire year. In 2023, she has income of \($16,000\) in wages and \($6,000\) of unearned income (none of which was “disqualified income”). Her AGI is \($22,000\).

a. What is Carolyn’s tentative earned income credit (before phaseout)?

b. What is Carolyn’s allowable earned income credit?

c. If Carolyn has no income tax liability (before the earned income credit is subtracted), is she entitled to a refund in the current year?

d. How will your answers to Parts a and b change if Carolyn is married filing a joint return?

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Pearsons Federal Taxation 2024 Individuals

ISBN: 9780138238100

37th Edition

Authors: Mitchell Franklin, Luke E. Richardson

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