ane's wages are $18,900 and she receives dividend income of $900. Diane’s 2019 earned income was lower than 2021. 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 $11,610 $21,430 $17,560 $27,380 1 19,520 42,158 25,470 48,108
ane's wages are $18,900 and she receives dividend income of $900. Diane’s 2019 earned income was lower than 2021. 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 $11,610 $21,430 $17,560 $27,380 1 19,520 42,158 25,470 48,108
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
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 2021, Diane's wages are $18,900 and she receives dividend income of $900. Diane’s 2019 earned income was lower than 2021. 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 $11,610 $21,430 $17,560 $27,380 1 19,520 42,158 25,470 48,108 2 19,520 47,915 25,470 53,865 3 or more 19,520 51,464 25,470 57,414
Calculate Diane's earned income credit using the EIC table in Appendix B.
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