Final answer:
A teen's earned income cannot typically be reported on a parent's tax return; teens usually need to file their own returns. The context provided discusses the Earned Income Tax Credit, which is a benefit that encourages work by supplementing income for low to moderate earners.
Step-by-step explanation:
The question concerns whether a teen's earned income can be reported on a parent's tax return, which is generally false. Instead, teens typically need to file their tax returns if they have earned income above a certain threshold. However, it's worth noting the context provided regarding the Earned Income Tax Credit (EITC), which is a benefit for working.
people with low to moderate income. It is designed to encourage work and reduce poverty by supplementing income. The EITC is phased out gradually, avoiding a steep decline in benefits that can discourage additional earnings. In the given example from 2013, for a single-parent family with two children, the EITC doesn't reduce until income rises above $17,530, and then it decreases by 21.06 cents for every dollar earned above that threshold until it phases out completely.