Rex and Dena are married and have two children,Michelle (age 7)and Nancy (age 5).During 2011,Rex earned a salary of $24,000,received interest income of $300,and filed a joint income tax return.Dena had $0 gross income.Their earned income credit for the year is:

Question

Quizplus · Accepted Answer

Based on the information given, Rex earned $24,000 in salary and $300 in interest income for a total earned income of $24,300. According to the IRS, for the 2011 tax year, the maximum Earned Income Credit (EIC) for a household with two qualifying children is $5,751. However, the actual amount of EIC depends on the taxpayer's adjusted gross income, filing status, and number of qualifying children. Using the EIC table provided by the IRS, a married couple filing jointly with two qualifying children and an adjusted gross income of $24,300 would have an EIC of $4,579. Therefore, the correct answer is C.

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