Maximum?credit Available for 2014 ($9,720 × 34%)??$3,305??Less:?Credit Phaseout?????Earned Income?$ 19,700????Base

question 97

Essay

Maximum?credit available for 2014 ($9,720 × 34%)??$3,305??Less:?Credit phaseout?????Earned income?$ 19,700????Base for phaseout? (17,830)????Excess?$ 1,870????Phaseout rate? × 15.98%? (299)??
Julia is 30 years old, unmarried with a 9 year-old daughter, and has earnings during 2014 of $19,700. Does she qualify for the earned income credit? If so, calculate the amount of credit that is available to her.
$\begin{array}{c}\text { Maximum credit available for } 2014(\$ 9,720 \times 34 \%)&&&\$3,305\\\begin{array}{llll}\text { Less: }& \text { Credit phaseout }\\&\text { Earned income } & \$ 19,700 \\&\text { Base for phaseout } & (17,830) \\&\text { Excess } & \$ 1,870 \\&\text { Phaseout rate } & \times 15.98 \%&(299)\end{array}\end{array}$
$\begin{array}{c}\text { Maximum credit available for } 2014(\$ 9,720 \times 34 \%)&&&\$3,305\\\begin{array}{llll}\text { Less: }& \text { Credit phaseout }\\&\text { Earned income } & \$ 19,700 \\&\text { Base for phaseout } & (17,830) \\&\text { Excess } & \$ 1,870 \\&\text { Phaseout rate } & \times 15.98 \%&(299)\end{array}\end{array}$

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