The Purpose of the Earned Income Tax Credit Program (EITC)

question 74

Multiple Choice

The purpose of the Earned Income Tax Credit Program (EITC) is to

• A) provide rebates of Social Security taxes to low-income workers.
• B) encourage low- and moderate-income workers to take second jobs to increase their income.
• C) provide in-kind services such as food stamps and public housing to those individuals who have poor credit.
• D) give tax credits to low-income individuals who do volunteer work in their communities.

---

Definitions:

World Wildlife Foundation

A global conservation organization dedicated to preserving the natural environment and reducing the human impact on the world's biodiversity.

AGI

Adjusted Gross Income, calculated by taking gross income and subtracting specific deductions, determining eligibility for many tax credits and deductions.

Deductibility

Deductibility pertains to the eligibility of an expense to be subtracted from gross income to lower taxable income, based on tax laws and regulations.

Medical Expenses

Costs for healthcare services that are paid out-of-pocket by an individual or covered by insurance.