What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an investment income limit in the tax law regarding the credit?

What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit? Why is there an investment income limit in the tax law regarding the credit?

SWFT Comprehensive Vol 2020

43rd Edition

ISBN:9780357391723

Author:Maloney

Publisher:Maloney

Chapter10: Deduct Ions And Losses: Certain Itemized Deduct Ions

Section: Chapter Questions

Problem 6BCRQ

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Question

Problem 7-8
Earned Income Credit (LO 7.2)
What is the maximum investment income a taxpayer is allowed to have and still be allowed to claim the earned income credit?
Why is there an investment income limit in the tax law regarding the credit?
The earned income credit is meant to assist low income level taxpayers who work.

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