A taxpayer with only interest and dividends is eligible for which of the following?

Prepare for the Intuit TurboTax Level 1 Exam with comprehensive quizzes. Study with multiple-choice questions, explanations, and hints. Ensure your success on the TurboTax exam!

A taxpayer whose income consists solely of interest and dividends does not have any earned income, which is a key requirement for several credits. The Earned Income Tax Credit (EITC) is specifically designed to provide benefits to working individuals with low to moderate income. Since this taxpayer does not have any wages or self-employment income, they do not qualify for the EITC.

The Premium Tax Credit is intended to help individuals afford health insurance purchased through a health insurance marketplace, but eligibility typically involves having earned income along with compliance with specific income thresholds related to the federal poverty level. Without earned income, this taxpayer is not eligible for this credit as well.

The Child Tax Credit, while available to taxpayers with qualifying dependents, also typically requires the taxpayer to have some earned income to claim the full amount. Therefore, with only investment income from interest and dividends, the taxpayer cannot qualify.

Considering these factors, the correct conclusion is that none of the provided credits are applicable to a taxpayer with only interest and dividends as their source of income, making the answer appropriate in this scenario.

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