Final answer:
Samuel and Annamaria's earned income credit for 2023 would be $3,661.36.
Step-by-step explanation:
The earned income credit for Samuel and Annamaria who are married, file a joint return, and have three qualifying children can be calculated based on their earned income and the phase-out limits for the credit. In 2023, they earn wages of $32,100, which falls within the phase-out range for the credit. The earned income credit is gradually reduced by 21.06 cents for every $1 earned above the lower phase-out limit of $17,530. Therefore, the credit for Samuel and Annamaria would be:
Total income above the lower phase-out limit: $32,100 - $17,530 = $14,570
Earned income credit reduction: $14,570 x 0.2106 = $3,066.64
Earned income credit: Maximum credit for three qualifying children in 2023 is $6,728. Therefore, the credit for Samuel and Annamaria would be $6,728 - $3,066.64 = $3,661.36