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 2020, Diane's wages are $18,900 and she receives dividend income of $900.

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	$8,790		$15,820			$14,860		$21,710
1	19,330		41,756			25,220		47,646
2	19,330		47,440			25,220		53,330
3 or more	19,330		50,594			25,220		56,844

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