Cheryl is single, has one child (age 6), and files as head of household during 2018. Her salary for the year is $19,500. She qualifies for an earned income credit of the following amount.

Question

Quizplus · Accepted Answer

First, we need to calculate Cheryl's earned income credit (EIC). To do that, we'll use the EIC table provided by the IRS (Publication 596). Since Cheryl has one qualifying child, we'll use the "One Qualifying Child" column of the table.

We know that Cheryl's earned income for the year is $19,500, so we'll find the row for this income level.

According to the table, the maximum credit for Cheryl's income level is $3,327. However, we need to adjust this amount based on her filing status and number of dependents. As a head of household with one qualifying child, the adjustment factor is 45%.

So, Cheryl's earned income credit for 2018 is:

$3,327 x 0.45 = $1,497.15

Therefore, the correct answer is C, $3,327.

Cheryl Is Single, Has One Child (Age 6), and Files