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Please use the tables below to help you calculate tax liability (or refund) in each of the following independent scenarios. Please assume that a taxpayer

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Please use the tables below to help you calculate tax liability (or refund) in each of the following independent scenarios. Please assume that a taxpayer who is eligible for the Earned Income Tax Credit will be able to take the maximum credit amount. Also, please use only the two credits below in your calculation. Earned Income Credit (for Single Taxpayers & Head of Household) Tax Year 2020 No. of Children Maximum Credit Income at Max Credit Phaseout Begins Phaseout Ends 0 $538 $7,030 $8,790* $15,820* 1 $3,584 $10,540 $19,330* $41,756* 2 $5,920 $14,800 $19,330* $47,440* 3 or more $6,660 $14,800 $19,330* $50.954* Taxpayers with investment income of more than $3,650 are not eligible for the credit. * Phaseout based on the greater of earned income or AGI. Increase by $5,890 for joint return filers. Saver's Credit 2020 Credit Rate Married Filing Single & Married Jointly Head of Household Separate 50% of your AGI not more than AGI not more than AGI not more than contribution $39,000 $29,250 $19,500 20% of your $39,001 - $42,500 $29,251 - $31,875 $19,501 - $21,250 contribution 10% of your $42,501 - $65,000 contribution $31,876 - $48,750 $21,251 - $32,500 0% of your contribution more than $65,000 more than $48,750 more than $32,500 (a) Erica's filing status is head of household. She has one child who is her dependent. She contributed $900 to a 401(k) during the year. Her AGI is $30,000. Her tax liability, before considering any potential tax credits, is $2,300. (b) Jane and Dan, both age 60, are married and file a joint return. They have two children. Jane contributed $9,000 to a 401(k) during the year. Dan contributed $500 to a traditional IRA. Their AGI is $50,000. Their tax liability, before considering any potential tax credits, is $500

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