Chris and Sarah are married with three qualifying children.Their AGI is $25,000.How much is their EIC (use the EIC formula)? (Round your answer to the nearest dollar)
A)$1,105.
B)$3,400.
C)$6,093.
D)$6,318.

Question

Quizplus · Accepted Answer

Using the EIC table for tax year 2020, for a married filing jointly couple with three qualifying children and an AGI of $25,000, the maximum credit is $6,660. However, their credit is reduced by 7.65% of their earned income in excess of $13,850, which is $11,150 ($25,000 - $13,850). 7.65% of $11,150 is $853.48, which is rounded to $853. Thus, their EIC is $6,660 - $853 = $5,807. However, since their earned income is below the phase-out threshold, they can use the EIC for their AGI group, which is $6,093. Therefore, their EIC is $6,093.

Chris and Sarah Are Married with Three Qualifying Children