Final answer:
The number of tax credits claimable on the TD1 form varies by individual circumstances. The Earned Income Tax Credit is specifically designed to support low-income earners and avoid the poverty trap by phasing out the benefit gradually as income increases.
Step-by-step explanation:
The number of tax credits that can be claimed on the TD1 is not a fixed number; it depends on the individual's circumstances. On the TD1 form, one would claim various credits like the basic personal amount and any other credits that they are eligible for, such as the disability amount, the tuition amount, or the spouse or common-law partner amount. When it comes to the Earned Income Tax Credit (EITC), this is a significant tax credit for low to moderate-income workers, which helps to reduce the danger known as the poverty trap. As per the information provided, the EITC is carefully structured to ensure that it's phased out slowly, allowing individuals to increase their earnings without immediately losing financial support. For instance, in 2013 a single parent with two children wouldn't see a decrease in this credit until their earnings exceeded $17,530. Beyond this income level, the credit would be reduced by 21.06 cents for each additional dollar earned until it's completely phased out at an income level of $46,227.