Using a 2021 tax year, determine if the taxpayers are eligible for the EIC in...
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Accounting
Using a 2021 tax year, determine if the taxpayers are eligible for the EIC in each of these situations. If they are eligible, list a dollar amount for the credit. If they aren't eligible, explain why.
1a.) Katelyn and Antonio are married and file a joint return. They have AGI of $31,000 in 2021, all of which is from wages. Their AGI in 2019 was $29,000. They are the sole support for their 15-year-old granddaughter, who is attending school in another state but comes home for three months in the summer and three weeks over winter break. The rest of the time, she is a full-time student. If yes, a dollar amount; if no, explain why.
b.) Alexander is 26, and his wife, Audrey, is 18. They file a joint return. Audrey's older sister, Ariana, is 20 and lives with Alexander and Audrey when she is not in school. She is a full-time student. They are her sole-support because Audrey's and Ariana's parents died last year. Alexander and Audrey also have a baby, Madeline, who is one year old. They file MFJ and have AGI of $32,200 in 2021. They had AGI of $32,500 in 2019. If yes, a dollar amount; if no, explain why.
c.) Ryan is 25, single, and has an AGI of $9,200 in 2021, all of which is from wages. His AGI in 2019 was $4,800. He lives with his mother, Lily, who has earned income and AGI of $18,000 in 2019 and 2021. Ryan's son, Bryce, is three and lives in the household as well. Ryan and Lily would like to minimize their overall tax liability. Which taxpayer should claim Bryce? What is the amount of the credit? Bryce or Lily and the dollar amount.
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