Which of the following individuals or couples qualify for the 2012 earned income credit?
I.Dennis is single and 25 years old.He is a recent graduate of Holly Technical College.During the year,Dennis cannot find a full-time job,but makes $7,000 as a waiter.
II.Matthew and Joan,are both 27,married,and have two children.Joan attends medical school while Matthew stays home with the children.Joan also works part-time at the hospital and earns $9,000.In addition,Joan inherits a substantial amount of money from her grandfather,which pays $5,000 of interest during the year.

Question

Quizplus · Accepted Answer

Only statement I is correct. Dennis qualifies for the earned income credit as he earned less than $14,340 in 2012 and did not have any qualifying children. Matthew and Joan do not qualify for the earned income credit as Joan earned more than $13,980 and they have two qualifying children, which increases the income threshold to $19,190. Additionally, Joan's inheritance income does not count towards earned income for the purposes of the credit.

Which of the Following Individuals or Couples Qualify for the 2012