Volunteer Income Tax Assistance (VITA) Certification Practice Test

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Can a taxpayer with an AGI above the maximum threshold claim the EIC?

  1. Yes

  2. No

The correct answer is: No

The Earned Income Credit (EIC) is designed to assist low to moderate-income working individuals and families, and eligibility for this credit is highly dependent on the taxpayer's adjusted gross income (AGI). Each tax year, there is a set maximum AGI threshold that corresponds to the taxpayer's filing status and the number of qualifying children they have. If a taxpayer's AGI exceeds the specified maximum threshold for their situation, they cannot claim the EIC. This is because the EIC is intended to provide financial aid to those who need it most, and exceeding the income limit indicates that the taxpayer's earnings may be too high to qualify for this particular benefit. Thus, if a taxpayer’s AGI is above the established maximum threshold, they are disqualified from claiming the EIC, making the response that they cannot claim the credit accurate.

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