What determines the amount of the Earned Income Tax Credit benefit a taxpayer receives?

The Earned Income Tax Credit (EITC) is designed to assist low to moderate-income working individuals and families, and the amount of the benefit is determined by two main factors: income and the number of qualifying children. Specifically, the taxpayer’s earned income and adjusted gross income must be below certain thresholds, which vary based on the number of qualifying children.

For taxpayers with qualifying children, the credit amount increases with the number of children, meaning that those with more qualifying children can receive a larger benefit. In addition, the EITC phases out at higher income levels, so the credit is designed to be more beneficial for those who earn income from work but still fall within lower income brackets.

Filing status and certain demographic factors like age or residency may influence the eligibility for the credit or determine other tax situations, but they do not directly affect the computation of the EITC benefit amount itself. Therefore, income and the number of qualifying children are the critical components in calculating the credit, making this the correct answer.