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The spousal/common law tax credit is available to those supporting a spouse who had earnings under $11 635 in 2017.T/F

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Final answer:

The statement is false because it does not accurately represent the Earned Income Tax Credit (EITC), which assists the working poor with increasing credit up to a certain income level, then phases out gradually.

Step-by-step explanation:

False. The spousal/common-law tax credit in question seems to be conflated with the Earned Income Tax Credit (EITC), which is a different credit aimed at assisting low-income working people. The EITC amounts and income thresholds for eligibility mentioned do not directly correlate to the spousal/common-law tax credit's criteria. In 2013, for a single parent with two children, the EITC would provide a credit of $5,372 up to an income level of $17,530. This credit is neither increased nor decreased as earnings rise from $13,430 to this level. Above that, the credit begins to phase out at a rate of 21.06 cents per dollar earned until it disappears at an income level of $46,227 to avoid the poverty trap where earned dollars could potentially negate government support.

User Marcelo Noronha
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