In 2018, Alex has income from wages of $16,000, adjusted gross income of $18,000, and tax liability of $300 before the earned income credit.What is the amount of Alex's earned income credit for 2018, assuming he is single and his 5-year-old dependent son lives with him for the full year?

Question

Quizplus · Accepted Answer

The earned income credit is calculated based on income, filing status, and number of dependents. In this case, since Alex is single and has one dependent son, he qualifies for the earned income credit. The maximum earned income credit for one dependent in 2018 is $3,461, but the actual credit amount depends on income. Since Alex's tax liability before the earned income credit is $300, he can receive a credit for up to $300. To calculate the exact amount of the credit, we would need to use the earned income credit table, but based on the information given, the maximum credit amount is $300.

In 2018, Alex Has Income from Wages of $16,000, Adjusted