Answer:
Option A: Must be calculated on earned income as well as adjusted gross income in some cases
Explanation:
Earned Income Credit also abbreviated to EIC is known to be a refundable tax credit. It is usually for qualified (low-income) taxpayers who have earned income such as wages.
Earned income are simply wages, self-employment income, and eligible disability pay.
The reason/purpose of the Earned Income Credit is to limit or reduce the tax burden on working families with lower earned income.
