Joyce, a single parent, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns $33,000 during 2020. She uses the standard deduction and files as a head of household.

Round all computations to the nearest dollar.

Click to access Earned Income Credit and Phaseout Percentages Table and the tax rates schedules.

a. Calculate the amount, if any, of Joyce's earned income credit. __________

b. During the year, Joyce is offered a new job that has greater future potential than her current job. If she accepts the job offer, her earnings for the year will be $39,000. Determine the increase or decrease in Joyce's net cash flow if she accepts the new job. Since the child tax credit will be the same under either scenario, you can ignore it for purposes of this analysis. Use the Tax Rate Schedule when computing her income tax.

	Keeps Old Job			Takes New Job
Tax calculation:
Salary	$33,000			$39,000
Less: standard deduction	______			______
Taxable income	________			_______
Income tax	________			_______
Less: earned income credit	_______			________
Net tax due or refund	_________			________
After-tax cash flow:
Salary	$33,000			$39,000
Less net tax due or Add refund	_______			_______
After-tax cash flow	_______			________
Net increase in cash flow if accept new job	________

Fill in the missing blanks ______ please.