Rex and Dena are married and have two children,Michelle (age 7) and Nancy (age 5).During 2015,Rex earned a salary of $24,500,received interest income of $300,and filed a joint income tax return with Dena.Dena had $0 gross income.Their earned income credit for the year is:

Question

Quizplus · Accepted Answer

To calculate the earned income credit (EIC), we need to figure out Rex's adjusted gross income (AGI) first.

AGI = Salary + Interest Income = $24,500 + $300 = $24,800

Since they filed a joint tax return, we can use the following table to figure out the EIC:

Number of Children: 2
AGI Limit: $44,648
Maximum Credit: $5,548

Since their AGI is below the limit, the maximum credit amount of $5,548 applies. Therefore, the EIC for Rex and Dena is $5,548.

Rex and Dena Are Married and Have Two Children,Michelle (Age