Question
1) Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old.
1) 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 2016, Diane's wages are $17,700 and she receives dividend income of $700.
Earned Income Credit Phase-Out Ranges | ||||||||
Number of Qualifying Children | Other than joint filers | Joint filers | ||||||
Phaseout Begins | Phaseout Ends | Phaseout Begins | Phaseout Ends | |||||
None | $8,270 | $14,880 | $13,820 | $20,430 | ||||
1 | $18,190 | $39,296 | $23,740 | $44,846 | ||||
2 | $18,190 | $44,648 | $23,740 | $50,198 | ||||
3 or more | $18,190 | $47,955 | $23,740 | $53,505 |
Calculate Diane's earned income credit using the EIC table in Appendix B. $
2) Calculate the child tax credit for the following taxpayers.
a. Jeremy is a single (head of household) father with $80,100 of AGI and has a dependent 8-year-old son: $
b. Jerry and Ann have $100,000 of AGI, file jointly, and claim two dependent preschool children: $
c. James and Apple have AGI of $117,300, file jointly, and claim two dependent children (ages 7 and 10): $
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