Ask an AI Accountant

To determine your tax liability, you'll first need to calculate your adjusted gross income (AGI) and taxable income. In this case, if your earned income is $32,000 and you have $11,000 in business expenses, your AGI would be $32,000 - $11,000 = $21,000. For the 2022 tax year, the standard deduction for married couples filing jointly is $27,200. Since your AGI is $21,000, which is lower than the standard deduction, your taxable income would be zero, and you would not owe any federal income tax. Regarding the Earned Income Tax Credit (EITC), as a married couple filing jointly with an AGI of $21,000, you may be eligible for the credit if you meet other requirements, such as having qualifying children. The maximum EITC amount for taxpayers with two children is $6,036 for the 2022 tax year. However, the actual credit amount will depend on your specific circumstances, such as the number of qualifying children, earned income, and AGI. It is worth considering the EITC when filing your tax return, as it could provide a refund or reduce your tax liability.