Question

The earned income credit: a.Must be calculated on earned income as well as adjusted gross income in some cases. b.Is available only if the taxpayer has qualifying children. c.Is available to married taxpayers who file separate returns. d.Cannot exceed the amount of the tax liability.

Answer 1

Answer:

Option A: Must be calculated on earned income as well as adjusted gross income in some cases

Explanation:

Earned Income Credit also abbreviated to EIC is known to be a refundable tax credit. It is usually for qualified (low-income) taxpayers who have earned income such as wages.

Earned income are simply wages, self-employment income, and eligible disability pay.

The reason/purpose of the Earned Income Credit is to limit or reduce the tax burden on working families with lower earned income.