Volunteer Income Tax Assistance (VITA) Certification Practice Test

Are Paul and Jessica eligible to claim the earned income credit?

1. Yes, because Naomi is a U.S. citizen.

2. Yes, because they have earned income.

3. No, because Jessica had no earned income.

4. No, because Paul and Jessica have ITINs.

The correct answer is: Yes, because Naomi is a U.S. citizen.

To determine eligibility for the Earned Income Credit (EIC), a few key factors need to be considered. One of the primary conditions is that the taxpayer must have qualifying children, and those children must meet specific residency and citizenship requirements. In this case, the fact that Naomi is a U.S. citizen plays a crucial role. If Naomi is a qualifying child and a U.S. citizen, Paul and Jessica could potentially be eligible to claim the Earned Income Credit despite any other conditions, such as the type of income they have or whether one of them has an ITIN. The EIC is designed to assist low- to moderate-income workers, and having a qualifying child who holds U.S. citizenship is a significant factor in qualifying for the credit. While having earned income is also an important requirement, it's not sufficient on its own if the children do not meet the necessary criteria. Similarly, not having earned income would disqualify them, and the use of ITINs could also be a barrier for some tax benefits; however, in this case, the citizenship of the qualifying child serves as a strong basis for eligibility. Thus, Naomi being a U.S. citizen is a valid reason supporting Paul and Jessica's eligibility for claiming the Earn