Shawn and Dahlia are married;both work and have one qualifying child.They had AGI of $19,000.What is their Earned Income Credit?
A)$0.
B)$5,616.
C)$3,400.
D)$6,460.

Question

Quizplus · Accepted Answer

To calculate the Earned Income Credit, we need to find their earned income, which is their AGI minus any non-taxable income like nontaxable social security benefits or tax-exempt interest. If we assume they have no non-taxable income, their earned income would be $19,000.

For a married couple with one qualifying child, the maximum Earned Income Credit for tax year 2020 is $3,584 with an earned income of $10,000 to $19,370. Since their earned income falls within this range, they would be eligible for the full credit.

The Earned Income Credit is based on a complex set of rules and factors, so it's always best to consult with a tax professional or use tax software to ensure accuracy.

Shawn and Dahlia Are Married;both Work and Have One Qualifying