Quiz: What can the EITC do for you?

By: Staff

4 Min Quiz

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About This Quiz

In 2010, nearly 27 million Americans claimed the Earned Income Tax Credit (EITC) for a total of $59.5 billion. Could you use some of that cash? Then take our quiz to find out if you qualify and how to claim your money.

The EITC is an income tax credit designed to help which of the following segments of American taxpayers?

The EITC is an anti-poverty measure built into the U.S. tax code to help lift working Americans above the poverty line.


Which of the following is considered the most successful anti-poverty program enacted by the U.S. federal government?

Even though the EITC is a tax credit, it still fights poverty better than any other social welfare program in America.


How many Americans were kept out of poverty in 2010 by the money they received through the EITC?

The Internal Revenue Service (IRS) estimates that 6.6 million people were elevated above the poverty line because of the refunds they received through the EITC.


If you are a single adult, head of household or widow(er) with no children, what is the maximum amount of money you can earn in a year and still qualify for the EITC?

The EITC is targeted at working individuals and family with very little earned income, so $13,660 is the maximum you can earn as a childless individual and still receive a tax credit.


What is the maximum amount of money you can earn as a married couple with three or more children and still qualify to receive the EITC?

$49,078 is the absolute most you can earn and still receive the EITC, and the amount of your credit will be very low.


Which of the following annual income levels results in the largest possible EITC for married couples with one or more children?

If you're married with one or more children, you will receive the largest EITC if your annual income hovers around $14,000. Higher or lower than that, and your EITC amount decreases.


True or False: You don't need to earn any money to qualify for the EITC.

It's right there in the name. The <i>Earned Income</i> Tax Credit is for people with some earned income, but not enough.


Which of the following is NOT a requirement to qualify for the EITC?

You don't have to be a U.S. citizen to qualify for the EITC. You can be a legal resident alien as long as you have a Social Security number.


Which of the following filing methods is NOT accepted when claiming the EITC?

If you're married, the IRS says you need to file your income taxes together to qualify for the EITC.


To claim an EITC with children, your children need to "qualify" under IRS rules. Which of the following children would NOT qualify under those rules?

The three "tests" for qualifying children are age, relationship and residency. In this case, even though your son meets the age and relationship criteria, he doesn't live with you, so your ex-husband is the one who would include him in an EITC claim.


If your child is a full-time student, how old can that kid be and still count as a "qualifying child" for EITC purposes?

Since full-time students often live at home and depend financially on their parents, they are considered qualifying children until the age of 24.


If you're claiming the EITC without any children, can you claim the credit after the age of 65?

The qualifying age range for claiming the EITC as a single person or married couple without qualifying children is 25 to 65 years old. There is no age limit for those claiming the credit with children.


Which of the following does NOT count as earned income under the EITC rules?

Wages, salary, tips and all taxable benefits (including Social Security and unemployment) must be included in your earned income calculations.


True or false: You can still qualify for the EITC even if you have a small amount of foreign earned income.

If you have foreign earned income that requires you to file IRS form 2555, then you can't receive an EITC.


What is the maximum amount of money you can earn in investment income and still receive an EITC?

If your investment income exceeds $3,150, then the IRS doesn't think you're in desperate need of an anti-poverty tax credit.


In what year was the EITC created?

The EITC emerged from welfare reform efforts in the early 1970s and was included as part of the Tax Reduction Act of 1975.


The EITC is a "refundable" tax credit, meaning it can lower your tax burden below zero, resulting in a refund. Which of the following tax credits are also refundable?

In the majority of cases, the Child Tax Credit is fully refundable.


How many families that are eligible for the Earned Income Tax Credit fail to claim it each tax year?

One-fifth of qualified families fail to claim the credit, so the Internal Revenue Service and Congress are trying to get the word out about the EITC so that more eligible families can benefit from the credits.


What is the maximum EITC dollar amount that you can possibly receive for tax year 2011?

This maximum credit of $5,751 is reserved for married couples with three or more children who earn around $14,000 a year.


How much money does the IRS wrongfully pay out in EITC claims each year based on incorrect earnings calculations?

Gulp. $13 billion is a lot of zeros for some simple math errors.


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