In 2020, Amanda and Jaxon Stuart have a daughter who is 1 year old. The Stuarts are full-time students and they are both 23 years old. Their only sources of income are gains from stock they held for three years before selling and wages from part-time jobs. What is their earned income credit in the following alternative scenarios if they file jointly? Use Exhibit 8-10. (Leave no answer blank. Enter zero if applicable.)

b. Their AGI is $18,400, consisting of $10,100 of lottery winnings (unearned income) and $8,300 of wages.

Earned income credit:

EXHIBIT 8-10 2020 Earned Income Credit Table (1) Maximum Earned Income Eligible for Credit Qualifying Children No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] 0 $ 7,030 10,540 1 $21,710 47,646 53,330 56,844 2 (3) Maximum Credit Phase-Out for AGI (5) (2) Credit (or earned income if Phase-Out Credit % (1) (2) greater) Over This Amount Percentage Married taxpayers filing joint returns 7.65% $ 538 $14,680 7.65% 34 3,584 25,220 15.98 40 5,920 25,220 21.06 45 6,660 25,220 21.06 All taxpayers except married taxpayers filing joint returns 7.65% $ 538 $ 8,790 7.65% 34 3,584 19,330 15.98 40 5,920 19,330 21.06 45 6,660 19,330 21.06 14,800 3+ 14,800 0 $ 7,030 10,540 1 $15,820 41,756 47,440 50,954 2 14,800 14,800 3+