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Which of the Following Describes the Earned Income Tax Credit

Question 51

Multiple Choice

Which of the following describes the Earned Income Tax Credit (EITC) ?


A) All poor families with children are eligible for a non-refundable tax credit based on the number of children living at home
B) Poor families with two or more children are eligible for a refundable tax credit if household income is less than some predetermined threshold. Beyond the threshold, the credit is gradually phased out
C) Poor families without children receive a non-refundable tax credit if household income is less than some predetermined threshold. Beyond the threshold, the credit is gradually phased out
D) Poor families with household income below a predetermined threshold receive a refundable tax credit equal to a guaranteed minimum income. Above that threshold, all households must pay taxes
E) None of the above

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