Joyce, a widow, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns $33,000 during 2019. She uses the standard deduction and qualifies for head-of-household filing status. 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. 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 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. Takes Keeps Old Job 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 Joyce, a widow, lives in an apartment with her two minor children (ages 8 and 10), whom she supports. Joyce earns $33,000 during 2019. She uses the standard deduction and qualifies for head-of-household filing status. 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. 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 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. Takes Keeps Old Job 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