What is one of the criteria for eligibility for the earned income tax credit (EITC)?

One of the key criteria for eligibility for the earned income tax credit (EITC) is indeed based on earned income and the number of qualifying children. The EITC is designed to provide financial relief to low-to-moderate-income working individuals and families, particularly those with children.

To qualify for the EITC, taxpayers must have earned income from employment or self-employment, and the amount of the credit can vary depending on the number of qualifying children they have. The presence of qualifying children can significantly increase the amount of the credit available, as the EITC is intended to lift families out of poverty by supplementing their earnings.

Having multiple sources of income or a particular filing status does not determine eligibility; rather, it is the combination of earned income and the number of qualifying children that directly impacts the credit's applicability. Additionally, being a homeowner is not a requirement for receiving the EITC, as the credit is focused solely on earned income and the taxpayers' dependent status.