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Which is an eligibility factor for the Earned Income Tax Credit?

A- Having a qualifying child
B- Pursuing post-secondary education
C- Filing as head of household
D- Receiving wages

1 Answer

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Final answer:

Having a qualifying child is an eligibility factor for the Earned Income Tax Credit (EITC), a credit that supports low-income working individuals by reducing poverty and incentivizing employment.

Step-by-step explanation:

The question regards the eligibility criteria for the Earned Income Tax Credit (EITC). Among the options provided, having a qualifying child is an eligibility factor for the EITC, as it directly impacts the amount of credit a taxpayer is entitled to receive. The structure of the EITC incentivizes work by increasing the tax credit with income up to a certain point before it begins to phase out.

For example, in 2013, a single parent with two children could have received a credit of $5,372, which went up with the amount of income earned until the phase-out began. This credit supports the working poor, helping to reduce poverty and encouraging employment over seeking governmental aid.

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