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In 2021, Lucy and Evan Stuart have a daughter who is 2 years old. The Stuarts are full-time students and they are both 24 years
In 2021, Lucy and Evan Stuart have a daughter who is 2 years old. The Stuarts are full-time students and they are both 24 years old. Their AGI is $18,600, consisting of $10,000 of lottery winnings (unearned income) and $8,600 of wages. What is their earned income credit if they file jointly? Use Exhibit 8-11. (Leave no answer blank. Enter zero if applicable.)
Earned income credit ______________
EXHIBIT 8-11 2021 Earned Income Credit Table (1) Maximum Earned Income Eligible for Credit (4) (3) Credit Phase-Out for Maximum AGI (or earned income Credit if greater) Over This (1) X (2) Amount No Credit When AGI (or earned income if greater) Equals or Exceeds This Amount (4) + [(3)/(5)] Qualifying Children (5) Phase-Out Percentage (2) Credit % Married taxpayers filing joint returns 0 $ 9,820 15.3% $1,502 $14,820 15.3% $24,637 1 10,640 34 3,618 25,470 15.98 48,108 2 14,950 40 5,980 25,470 21.06 53,865 3+ 14,950 45 6,728 25,470 21.06 57,414 All taxpayers except married taxpayers filing joint returns 15.3% $ 1,502 $ 11,610 15.3% 0 $ 9,820 $21,427 1 10,640 34 3,618 19,520 15.98 42,158 2 14,950 40 5,980 19,520 21.06 47,915 3+ 14,950 45 6,728 19,520 21.06 51,464Step by Step Solution
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