Jason's earned income credit
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
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. $___________

Transcribed Image Text: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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