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 2020, Diane's wages are $18,900 and she receives dividend income of $900.
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 | $8,790 | $15,820 | $14,860 | $21,710 | ||||
1 | 19,330 | 41,756 | 25,220 | 47,646 | ||||
2 | 19,330 | 47,440 | 25,220 | 53,330 | ||||
3 or more | 19,330 | 50,594 | 25,220 | 56,844 |
Calculate Diane's earned income credit using the EIC table in Appendix B.
2- Calculate the total child and other dependent credit for the following taxpayers.
James and Apple have AGI of $430,300, file jointly, and claim three dependent children (ages 7, 10, and 19):
3-
William and Carla file a joint tax return. Carla earned $27,500 during the year, while William attended law school full-time for 9 months and earned no income. They paid $3,500 for the care of their 3-year-old child, Carl.
Round your answer to the nearest whole dollar.
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