Which individual scenario is not eligible for the Earned Income Credit?

Prepare for the Enrolled Agent Exam. Use flashcards and multiple-choice questions with hints and explanations to master the material. Be exam-ready with confidence!

The eligibility for the Earned Income Credit (EIC) is determined by specific criteria set by the IRS, including income type and filing status. One key stipulation is that individuals must have a valid Social Security Number (SSN) to qualify for the EIC. An individual with an Individual Taxpayer Identification Number (ITIN) does not meet this requirement and therefore is not eligible for the credit.

Having self-employment income qualifies for the EIC, provided the individual meets other income and filing requirements. A couple filing jointly can also claim the credit if they meet the necessary income thresholds and have qualifying children or meet the criteria for no children. The investment income threshold for eligibility is set at $10,000 for the tax year; thus, having an investment income of $2,000 would generally not disqualify an individual from claiming the EIC, as it is below that limit.

In summary, the defining factor for ineligibility in this context is having an ITIN, which disqualifies the individual from claiming the Earned Income Credit.

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