Chapter 15 Homework

3.  Carolyn is unmarried and has one dependent​ child, age​ 6, who lived with her for the entire year. In 2020​, she has income of $16,000 in wages and $6,000 of unearned income​ (none of which was​ “disqualified income”). Her AGI is $22,000.

1. What is Carolyn’s tentative earned income credit​ (before phaseout)?
2. What is Carolyn’s allowable earned income​ credit?
3. If Carolyn has no income tax liability​ (before the earned income credit is  subtracted), is she entitled to a refund in the current​ year?
4. How will your answers to Parts a and b change if Carolyn is married filing a joint​ return?