Answer:
Possible options are:
a.) $3060
b.) $2834
c.) $0
d.) $506
Answer is a.) $3060
Explanation:
Tax credits and tax deductions are two quite different things. Both can save you money on taxes, but credits will save you more and some credits are better than others because they're refundable.
Deductions come off your taxable income. If you're single, you earned $50,000 last year, and you claim the standard deduction, you would only be taxed on $37,800 of your 2019 earnings because that deduction was worth $12,200 in that tax year.Some credits only whittle away at what you owe the IRS, but refundable credits can actually put some cash in your pocket if there's any left over after your tax debt is reduced to zero.
When you're eligible to claim a credit that's refundable and if it's more than your total tax liability, the Internal Revenue Service will send you the balance of the money.
Answer:
$3,526
Explanation:
The Earned Income Tax Credit (EITC) is a refundable tax credit for low income families, but there are certain qualifications that you must meet.
A single mother of 1 child is eligible for $3,526 if she:
People without children can also apply, as well as married families, but some qualifications may be different. Since this question involved a single mother, I focused on that alone.
