Jason, a single parent, lives in an apartment with his three minor children, whom he supports. Jason earned $27,400 during 2020 and uses the standard deduction.Calculate the amount, if any, of Jason's earned income credit. $___________ Exhibit 13.2 Earned Income Credit and Phaseout PercentagesТаxYearPhaseout Ends+at Income ofNumber ofEarned IncomeBase AmountCreditMaximumCreditPhaseoutBasePhaseoutQualifying ChildrenPercentagePercentage2020 Married, Filing JointlyNo children$ 7,0307.65$ 538$14,6807.65$21,710One child10,54034.003,58425,22015.9847,646Two children14,80040.005,92025,22021.0653,330Three or more children14,80045.006,66025,22021.0656,848Other TaxpayersNo children$ 7,0307.65$ 538$ 8,7907.65$15,820One child10,54034.003,58419,33015.9841,756Two children14,80040.005,92019,33021.0647,440Three or more children14,80045.006,66019,33021.0650,9542019Married, Filing JointlyNo children$ 6,9207.65$ 529$14,4507.65$21,370One child10,37034.003,52624,82015.9846,884Two children14,57040.005,82824,82021.0652,493Three or more children14,57045.006,55724,82021.0655,952Other TaxpayersNo children$ 6,9207.65$ 529$ 8,650$15,5707.65One child10,37034.003,52619,03015.9841,094Two children14,57040.005,82819,03021.0646,703Three or more children14,57045.006,55719,03021.0650,162

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Answered: Jason's earned income credit

Business

Accounting

Jason's earned income credit

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter12: Current Liabilities

Section: Chapter Questions

Problem 10PB: Use Figure 12.15 to complete the following problem. Roland Inc. employees monthly gross pay...

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Question

Jason, a single parent, lives in an apartment with his three minor children, whom he supports. Jason earned $27,400 during 2020 and uses the standard deduction.

Calculate the amount, if any, of Jason's earned income credit. $___________

Exhibit 13.2 Earned Income Credit and Phaseout Percentages
Таx
Year
Phaseout Ends+
at Income of
Number of
Earned Income
Base Amount
Credit
Maximum
Credit
Phaseout
Base
Phaseout
Qualifying Children
Percentage
Percentage
2020 Married, Filing Jointly
No children
$ 7,030
7.65
$ 538
$14,680
7.65
$21,710
One child
10,540
34.00
3,584
25,220
15.98
47,646
Two children
14,800
40.00
5,920
25,220
21.06
53,330
Three or more children
14,800
45.00
6,660
25,220
21.06
56,848
Other Taxpayers
No children
$ 7,030
7.65
$ 538
$ 8,790
7.65
$15,820
One child
10,540
34.00
3,584
19,330
15.98
41,756
Two children
14,800
40.00
5,920
19,330
21.06
47,440
Three or more children
14,800
45.00
6,660
19,330
21.06
50,954
2019
Married, Filing Jointly
No children
$ 6,920
7.65
$ 529
$14,450
7.65
$21,370
One child
10,370
34.00
3,526
24,820
15.98
46,884
Two children
14,570
40.00
5,828
24,820
21.06
52,493
Three or more children
14,570
45.00
6,557
24,820
21.06
55,952
Other Taxpayers
No children
$ 6,920
7.65
$ 529
$ 8,650
$15,570
7.65
One child
10,370
34.00
3,526
19,030
15.98
41,094
Two children
14,570
40.00
5,828
19,030
21.06
46,703
Three or more children
14,570
45.00
6,557
19,030
21.06
50,162

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