Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible to take the
Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible to take the credit. Use Table 9-3 Required: Calculate the credit using the formulas. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. a. A single person with earned income of $5.270 and no qualifying children b A single person with earned income of $23,300 and two qualifying children. c. A married couple filing jointly with earned income of $35,070 and one qualifying child Earned Income Credit TABLE 9-3 Earned Income Credit Tax Year 2021 Number of Eligible Children None One Two Three or More EIC percentage 15.30% 34.0% 40.0% 45.0% For earned income up to $9,820 $10,640 $14,950 $14,950 Maximum EIC $1,502 $3,618 $5,980 $6,728 Phaseout percentage 15.30% 15.98% 21.06% 21.06% For joint Glers Phaseout starts at earned income of $17,560 $25,470 $25,470 $25,470 Phaseout ends at earned income of $27,380 $48,108 $53,865 $57,414 For all other filers Phaseout starts at earned income of $11,610 $19,520 $19,520 $19,520 Phaseout ends at earned income of $21,430 $42,158 $47,915 $31,464 The dollar amounts in the table are subject to annual adjustments for inflation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started