Mr. and Mrs. Toliver’s AGI on their jointly filed return is $339,000. Regardless of the number of their children, the Tolivers are not eligible for a child credit. TRUEMr.and Mrs. Casey have two dependent children, ages 3 and 6. The Caseys spent $10,300 for child care this year. Mrs. Casey is employed full-time as an attorney. Mr. Casey is an unpublished novelist who has yet to earn any The earned income credit is only available to low-income taxpayers with dependent children. FALSE
The earned income credit offsets the burden of the federal payroll tax on low-income families and encourages individuals to seek employment rather than to depend on welfare. TRUEMrs. Starling worked for Abbot Inc. from January 1 through September 19. Her salary from Abbot for this period totaled $122,000. Mrs. Starling worked for JJT Inc. from October 1 through December 31. Her salary from JJT