Danika is a single mother with three children, ages 3,7,and 9. They all have a valid Social Security number.

Danika's tax return shows and AGI of $32,765, which includes earned income of $32,700 and interest income of $65.00. She meets the requirements for filing status Head of Household and supports her family without any additional help from other sources. Which of the following statements is true?

A) Danika's EIC will be based on her earned income alone without considering her AGI.

B) Danika's EIC will be the smaller of the two EIC amounts based on her AGI for her earned income.

C) Danika's EIC will be based on her AGI without considering the earned income amount.

D) Danika's is not eligible to receive EIC.

Answer rating: 100% (QA)

Answer C Danikas EIC will be based on her AGI without considering the earne... View the full answer