Question

The young child tax credit is available to taxpayers who qualify for the california earned income tax credit and who have at least one qualifying child who is younger than what age?

O six years old as of the last day of the taxable year.
O seven years old as of the last day of the taxable year.
O sixteen years old as of the last day of the taxable year.
O seventeen years old as of the last day of the taxable year.

Answer 1

The Young Child Tax Credit is available for taxpayers with a qualifying child under six years old. It is tied to the California Earned Income Tax Credit and aims to assist the working poor without creating a substantial poverty trap.

Step-by-step explanation:

The Young Child Tax Credit in California is available to taxpayers who qualify for the California Earned Income Tax Credit (EITC) and have at least one qualifying child. The age threshold for a qualifying child for this tax credit is six years old as of the last day of the taxable year. Understanding tax credits like the EITC is essential, as they serve as a method of assisting the working poor through the tax system by providing a credit that phases in with income until a maximum benefit is reached and then phases out slowly to minimize the poverty trap where additional income could reduce government support payments.