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 2019, Diane's wages are $18,900 and she receives dividend income of $900.

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 $8,650 $15,570 $14,450 $21,370
1 19,030 41,094 24,820 46,884
2 19,030 46,703 24,820 52,493
3 or more 19,030 50,162 24,820 55,952
Calculate Diane's earned income credit using the EIC table in Appendix B.