Answer Happy

Determine the amount of the Earned Income Credit in each of the following cases. Assume that the person or persons are eligible to take the credit. Use Table 9.3 Required: Calculate the credit using the formulas. Note: For all requirements, do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Earned Income Credit a A single person with earned income of $5,260 and no qualifying children. b. A single person with earned income of $23,200 and two qualifying children c. A married couple filing jointly with earned income of $34,960 and one qualifying child
TABLE 9-3* Earned Income Credit Tax Year 2021 Number of Eligible Children None Two One 34.0% EIC percentage 15.30% 40.0% For earned income up to $9,820 $ 10,640 $14.950 Maximum EIC $1,502 $3,618 $ 5,980 Phaseout percentage 15.30% 15.98% 21.06% For joint filers: $ 17,560 $25,470 $25.470 Phaseout starts at earned income of Phaseout ends at earned income of For all other filers: $ 27,380 $ 48,108 $53,865 $ 11,610 $19,520 $19,520 Phaseout starts at earned income of Phaseout ends at earned income of $21,430 $ 42,158 $ 47.915 * The dollar amounts in the table are subject to annual adjustments for inflation. Three or More 45.0% $14.950 $6.728 21.06% $ 25,470 $57,414 $19,520 $ 51,464