Volunteer Income Tax Assistance (VITA) Certification Practice Test

Does Mike have qualifying children for the earned income credit?

1. Yes

2. No

3. Only for state tax purposes

4. Only one qualifying child

The correct answer is: No

In determining whether a taxpayer has qualifying children for the earned income credit (EIC), several criteria must be met regarding the children’s relationship to the taxpayer, their age, residency, and other factors. The correct answer indicates that Mike does not have qualifying children for the EIC, meaning he likely fails to meet one or more of these criteria. Qualifying children must be related to the taxpayer (e.g., biological children, stepchildren, or adopted children), must be under a certain age (generally under 19, or under 24 if a full-time student), and must have lived with the taxpayer for more than half of the year. If Mike's children do not meet these specific criteria—perhaps they are not related to him, are older than the required age, or did not reside with him during the required period—he would not be eligible to claim any qualifying children for EIC purposes. This understanding of the rules is crucial for accurately assessing eligibility for the earned income credit and ensuring compliance with tax regulations. The other options pertain to scenarios that either do not align with the mentioned criteria or misinterpret the nature of the earned income credit as it applies to qualifying children.