Problem 7-6 Earned Income Credit (LO 7.2)

Diane is a single taxpayer who qualifies for the earned income credit. Diane has two qualifying children who are 3 and 5 years old. During 2021, Diane's wages are $18,900 and she receives dividend income of $900. Dianes 2019 earned income was lower than 2021.

Earned Income Credit Phase-Out Ranges
Number of Qualifying Children	Other than joint filers				Joint filers
	Phaseout Begins		Phaseout Ends			Phaseout Begins		Phaseout Ends
None	$11,610		$21,430			$17,560		$27,380
1	19,520		42,158			25,470		48,108
2	19,520		47,915			25,470		53,865
3 or more	19,520		51,464			25,470		57,414

Calculate Diane's earned income credit using the EIC table in Appendix B.