Who is eligible for the Earned Income Tax Credit (EITC)?

The Earned Income Tax Credit (EITC) is specifically designed to benefit low-to-moderate income workers, particularly those with qualifying children. To be eligible for the EITC, individuals must meet income limits, which are adjusted annually, as well as support certain criteria that consider family size and filing status. The credit aims to reduce poverty and incentivize work by providing additional financial assistance to those who earn income but may also face financial challenges.

Qualifying children must meet specific requirements related to age, relationship, residency, and joint return restrictions. Alternatively, there are provisions for workers without qualifying children, focusing on age (at least 25 but under 65), residency, and earning income within the set limits. Therefore, option B accurately captures the essence of the EITC’s purpose and eligibility requirements, providing critical support to those who need it most in the workforce.

In contrast, high-income earners would not be eligible for the credit due to income limits. Additionally, there are no stipulations that require electronic filing to qualify for the EITC, and eligibility is not restricted solely to those over the age of 65. Thus, the key criteria revolve around income levels and the presence of qualifying children or meeting specific guidelines for