Question

Which of the following taxpayers qualifies for the Earned Income Credit? (All are U.S. citizens, lived in the United States for more than six months, and have valid social security numbers that allow them to work. They did not have any foreign income and will not file Form 2555, Foreign Earned Income.) Alley (28) is filing as a single taxpayer with no dependents. Alley's earned income and adjusted gross income in 2022 was $24,900, all from wages. She had no other income. Anwar (27) is filing as a single taxpayer with no dependents. Anwar's earned income and adjusted gross income in 2022 was $13,333, all from wages. He had no other income. Doug (38) and Serena (39) are married, filing a joint return. Doug's income from wages was $19,781. Serena's income from wages was $31,564. They had no other income in 2022. Doug and Serena had their first child, Caleb, in December 2022. Ronald (29) and Suzie (39) are married, filing a joint return. Ronald's income from wages was $20,778. Suzie's income from wages was $42,555. They had no other income in 2022. Ronald and Suzie have three qualifying children (ages 3, 6, and 9).

Answer 1

Alley, Anwar, Doug and Serena, and Ronald and Suzie potentially qualify for the Earned Income Tax Credit based on their income and family status. The qualification is ultimately determined by current tax year regulations, which specify income limits and phase-out thresholds.

Step-by-step explanation:

The question involves determining which taxpayers listed qualify for the Earned Income Tax Credit (EITC). The EITC depends on various factors, such as income, filing status, and number of children.

Alley, a single taxpayer with no dependents and an income of $24,900, may qualify for EITC since she falls within the income limit for single filers without children. Anwar, with an earned income of $13,333, also qualifies for EITC, as his income is well below the phase-out threshold for a single person without children. Doug and Serena, married and filing jointly with an income of $51,345 and one child, potentially qualify for the EITC because their income is below the cutoff for a married couple with one child. Finally, Ronald and Suzie, a married couple filed jointly, with an income of $63,333 and three children, will qualify for EITC since their income is below the phase-out limit for a couple with children.
It's important to note that the income thresholds and phase-out rates can vary each tax year, so while these assessments are based on known information, the actual qualification for EITC should be verified with the current year's tax regulations.