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If a taxpayer has investment income that exceeds a certain threshold, they are not eligible to
claim the Earned Income Credit. For 2022, what is that threshold?
If a taxpayer's Earned Income Credit (EIC) was disallowed, what additional step must the
taxpayer take the next time they claim the EIC?
Stan would like to claim his grandson, Spencer, as his qualifying child so he can claim the
Earned Income Credit (EIC). However, Spencer's mother, Alma, is also eligible to claim Spencer
as her qualifying child for EIC purposes. As Stan's tax preparer, what information would you
share with Stan?
All of the following statements regarding the 2022 Additional Child Tax Credit are correct,
EXCEPT?
Paloma (63) shared a home all year with her son, Antonio (41), and Antonio's son, Danny (23).
They were all U.S. citizens, lived in the U.S. all year, and all had social security numbers valid
for employment. Paloma and Antonio worked full-time. Danny was a part-time student during
the year; he took one class at the local community college. Danny also worked part-time and had
wages of $6,800. No one else lived in the home. Paloma had earned income and an adjusted
gross income of $23,459. She had no foreign income or investment income. Antonio had earned
income and an adjusted gross income of $32,500. He had no foreign income or investment
income. Who, if anyone, is eligible to claim and receive the Earned Income Credit?
Which of the following taxpayers qualifies for the Earned Income Credit? (All are U.S. citizens,
lived in the United States for more than six months, and have valid social security numbers that
allow them to work. They did not have any foreign income and will not file Form 2555, Foreign
Earned Income.)

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If a taxpayer has investment income that exceeds a certain threshold.pdf

  • 1. If a taxpayer has investment income that exceeds a certain threshold, they are not eligible to claim the Earned Income Credit. For 2022, what is that threshold? If a taxpayer's Earned Income Credit (EIC) was disallowed, what additional step must the taxpayer take the next time they claim the EIC? Stan would like to claim his grandson, Spencer, as his qualifying child so he can claim the Earned Income Credit (EIC). However, Spencer's mother, Alma, is also eligible to claim Spencer as her qualifying child for EIC purposes. As Stan's tax preparer, what information would you share with Stan? All of the following statements regarding the 2022 Additional Child Tax Credit are correct, EXCEPT? Paloma (63) shared a home all year with her son, Antonio (41), and Antonio's son, Danny (23). They were all U.S. citizens, lived in the U.S. all year, and all had social security numbers valid for employment. Paloma and Antonio worked full-time. Danny was a part-time student during the year; he took one class at the local community college. Danny also worked part-time and had wages of $6,800. No one else lived in the home. Paloma had earned income and an adjusted gross income of $23,459. She had no foreign income or investment income. Antonio had earned income and an adjusted gross income of $32,500. He had no foreign income or investment income. Who, if anyone, is eligible to claim and receive the Earned Income Credit? Which of the following taxpayers qualifies for the Earned Income Credit? (All are U.S. citizens, lived in the United States for more than six months, and have valid social security numbers that allow them to work. They did not have any foreign income and will not file Form 2555, Foreign Earned Income.)