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 2018, Diane's wages are $18,300 and she receives dividend income of $700. 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 $8,490 $15,270 $14,170 $20,950 1 $18,660 $40,320 $24,350 $46,010 2 $18,660 $45,802 $24,350 $51,492 3 or more $18,660 $49,194 $24,350 $54,884 Calculate Diane's earned income credit using the EIC table in Appendix B.
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 2018, Diane's wages are $18,300 and she receives dividend income of $700. 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 $8,490 $15,270 $14,170 $20,950 1 $18,660 $40,320 $24,350 $46,010 2 $18,660 $45,802 $24,350 $51,492 3 or more $18,660 $49,194 $24,350 $54,884 Calculate Diane's earned income credit using the EIC table in Appendix B.
Chapter13: Tax Credits And Payment Procedures
Section: Chapter Questions
Problem 30P
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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 2018, Diane's wages are $18,300 and she receives dividend income of $700.
| 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 | $8,490 | $15,270 | $14,170 | $20,950 | ||
| 1 | $18,660 | $40,320 | $24,350 | $46,010 | ||
| 2 | $18,660 | $45,802 | $24,350 | $51,492 | ||
| 3 or more | $18,660 | $49,194 | $24,350 | $54,884 |
Calculate Diane's earned income credit using the EIC table in Appendix B.
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