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 2023, Diane's wages are $21,000 and she receives dividend income of $1,200. Earned Income Credit Phase-Out Ranges Other Than Joint Filers Joint Filers Qualifying Children Phase-out Phase-out Phase-out Phase-out Begins Ends Begins Ends None $9,800 $17,640 $16,370 $24,210 1 21,560 46,560 28,120 53,120 2 21,560 52,918 28,120 59,478 3 or more 21,560 56,838 28,120 63,398 Calculate Diane's earned income credit using the EIC table in Appendix B.
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 2023, Diane's wages are $21,000 and she receives dividend income of $1,200. Earned Income Credit Phase-Out Ranges Other Than Joint Filers Joint Filers Qualifying Children Phase-out Phase-out Phase-out Phase-out Begins Ends Begins Ends None $9,800 $17,640 $16,370 $24,210 1 21,560 46,560 28,120 53,120 2 21,560 52,918 28,120 59,478 3 or more 21,560 56,838 28,120 63,398 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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