Problem 10-29 (LO. 3)
Jason, a single parent, lives in an apartment with his three minor children, whom he supports. Jason earned $27,400 during 2019 and uses the standard deduction.
Click here to access Earned Income Credit and Phaseout Percentages Table.
Round all computations to the nearest dollar.
Calculate the amount, if any, of Jason's earned income
credit.
$
1 | Earned Income | $ 27,400 |
2 | Earned Income base amount | $ 14,570 |
3 | Earned Income Credit % | 45% |
4 | Earned Income Credit before Phaseout | $ 6,557 |
(1) or (2) whichever is lower * (3) | ||
5 | Phase-out Threshold | $ 19,030 |
6 | Earned Income in Excess of Phase-out Threshold | $ 8,370 |
(5)-(1) | ||
7 | Phase-out % | 21.06% |
8 | Credit Phase-out Amount (6)*(7) | $ 1,763 |
9 | Earned Income Credit after Phase-out (4)-(8) | $ 4,794 |
Get Answers For Free
Most questions answered within 1 hours.