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The Basic Personal Amount is a non-refundable tax credit that reduces ones taxes by $11 635 in 2017.T/F

User Sunxd
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Final answer:

The Basic Personal Amount and the Earned Income Tax Credit (EITC) are different tax provisions. The EITC supports low-income workers and adjusts based on income and family size, with a phase-out to avoid a poverty trap.

Step-by-step explanation:

The statement that the Basic Personal Amount is a non-refundable tax credit that reduces one's taxes by $11,635 in 2017 is not accurate. Instead, it seems the question may be conflating the Basic Personal Amount with the Earned Income Tax Credit (EITC), which is a different tax provision aimed at assisting low-income workers. In 2013, for example, a single parent with two children could receive an EITC of $5,372. By 2021, the range for the earned income credit was between $1,502 and $6,728, depending on various factors. Additionally, the EITC is structured to avoid a poverty trap by slowly phasing out as income increases, ensuring that work always pays more than not working.

User Thomas Praxl
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