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 2021. 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. 33,000 X Feedback Check My Work 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 eamings for the year will be $39,000; however, she is afraid she will not qualify for the earned income credit. 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 18,650 Taxable income Income tax Less: eamed income credit Code Net tax due or refund 1,756 X 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 4,016 X