The Earned Income Tax Credit isA) a non-refundable tax credit.B) available only to low-income families.C) a very simple program that is widely understood.D) only a small program and claimed by very few households annually.

Question

The Earned Income Tax Credit isA)  a non-refundable tax credit.B)  available only to low-income families.C)  a very simple program that is widely understood.D)  only a small program and claimed by very few households annually.

shweta saxena · Accepted Answer

Final Answer : B, Explanation :  The Earned Income Tax Credit (EITC) is specifically designed to benefit low-income families by reducing the amount of tax owed and potentially increasing their tax refund. It is not non-refundable; in fact, it is a refundable credit, meaning if the credit amount is more than what the individual owes in taxes, they can receive the difference as a refund. The EITC is not considered simple due to its complex eligibility requirements and calculations, making it not widely understood. Additionally, it is a significant program in terms of its reach, with millions of households claiming the credit annually, making it far from a small program.

The Earned Income Tax Credit is

A) a non-refundable tax credit.
B) available only to low-income families.
C) a very simple program that is widely understood.
D) only a small program and claimed by very few households annually.

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