a. What is Carolyn’s tentative earned income credit (before phase out)? b. what is Carolyn’s allowable earned income credit? c. If Carolyn has no income tax liability (before the earned income credit is subtracted), is she entitled to a refund in the current year?

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter12: Tax Credits And Payments
Section: Chapter Questions
Problem 28P
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Earned Income Credit. Carolyn is unmarried and has one dependent child, age 6, who lives with her for the entire year. In 2015, she has income of $16,000 in wages and $6,000 in alimony. Her AGI is $22,000.

a. What is Carolyn’s tentative earned income credit (before phase out)?

b. what is Carolyn’s allowable earned income credit?

c. If Carolyn has no income tax liability (before the earned income credit is subtracted), is she entitled to a refund in the current year?

d. How will your answers to Part a and b change if Carolyn is married filing a joint return

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