Final answer:
Sandra, age 40, with California earned income of $15,000 and investment income of $10,000, qualifies for the California Earned Income Tax Credit, as her earnings fall within the eligibility criteria for individuals without a qualifying child.
Step-by-step explanation:
The taxpayer that may qualify for the California Earned Income Tax Credit (CalEITC), assuming all other requirements are met and none of the taxpayers have a qualifying child, is Sandra, age 40, with California earned income of $15,000 and investment income of $10,000.The Earned Income Tax Credit is designed to help low- to moderate-income working people get ahead. The credit itself increases with income up to a certain point, and then begins to phase out at higher income levels to avoid the poverty trap, where additional earnings could result in losing government support. In the state of California, the requirements for CalEITC for 2020 stipulate that a taxpayer must have wages and self-employment income within certain limits, and investment income must be $3,500 or less.
Looking at each taxpayer: Penny's income exceeds the threshold for a single filer without a qualifying child, Todd cannot claim the credit as he is claimed as a dependent on his parent's tax return, and Victor's earned income may fall within the qualifying range, but as he is 19 years old and not a full-time student for at least five months of the tax year or have a qualifying child, he does not meet age requirements. Sandra's earned and investment incomes appear to meet the qualifications for the credit.