Which of the following, if any, correctly describes the earned income credit?
A)Would be available regardless of the amount of the taxpayer's adjusted gross income.
B)Is not available to a surviving spouse.
C)Requires a taxpayer to have a qualifying child to take advantage of the credit.
D)Is a refundable credit.

Question

Quizplus · Accepted Answer

The earned income credit is a refundable credit, meaning that if the credit exceeds the amount of tax owed by the taxpayer, the excess will be refunded to the taxpayer. This credit is designed to provide additional financial assistance to low-to-moderate income taxpayers who have earned income from working. The other choices are incorrect. The earned income credit is subject to income limitations, and the taxpayer must have earned income to qualify, but it does not require a qualifying child. It is also available to surviving spouses who meet the eligibility criteria.

Which of the Following, If Any, Correctly Describes the Earned