Subject - AcountingProblem 7-6Earned 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 2022, Diane's wages are $19,800 and she receives dividend income of $1,200. Number of Qualifying ChildrenOther than joint filersJoint filersPhaseout BeginsPhaseout EndsPhaseout BeginsPhaseout EndsNone$11,610$21,430 $17,560 $27,380 119,52042,15825,47048,108219,52047,91525,47053,8653 or more19,52051,46425,47057,414Calculate Diane's earned income credit $Would you kindly assist and explain:) I'm grateful for your help :)

Please find the calculation of Earned Income Credit (EIC) of Diane in step 3 below.

Answered: Diane is a single taxpayer who…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Subject - Acounting

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 2022, Diane's wages are $19,800 and she receives dividend income of $1,200.

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