Question

Paloma (63) shared a home all year with her son, Antonio (41), and Antonio's son, Danny (23). They were all U.S. citizens, lived in the U.S. all year, and all had social security numbers valid for employment. Paloma and Antonio worked full-time. Danny was a part-time student during the year; he took one class at the local community college. Danny also worked part-time and had wages of $6,800. No one else lived in the home. Paloma had earned income and an adjusted gross income of $23,459. She had no foreign income or investment income. Antonio had earned income and an adjusted gross income of $32,500. He had no foreign income or investment income. Who, if anyone, is eligible to claim and receive the Earned Income Credit? Both Paloma and Antonio. Either Paloma or Antonio but not both. Paloma only. No one

Answer 1

A) both Paloma and Antonio

Answer 2

Both Paloma and Antonio are eligible for the Earned Income Credit due to meeting age, citizenship, residency, income, and employment criteria.

In this scenario:

1. Paloma is eligible to claim and receive the Earned Income Credit (EIC) because she meets the following EIC requirements:

• She is a U.S. citizen.
• She lived in the U.S. all year.
• She had earned income.
• She meets the age requirement (between 25 and 65).
• Her adjusted gross income is within the EIC income limits for the tax year.

2. Antonio is also eligible to claim and receive the Earned Income Credit (EIC) because he meets the same requirements as Paloma:

• He is a U.S. citizen.
• He lived in the U.S. all year.
• He had earned income.
• He meets the age requirement (between 25 and 65).
• His adjusted gross income is within the EIC income limits for the tax year.

In summary, both Paloma and Antonio are eligible to claim and receive the Earned Income Credit (EIC).