Requirements to receive Earned Income Tax Credit
Phase-out
How is Medicare funded?
Medicare is available for...
Part A
What was the purpose of the Tax Reduction Act of 1975?
Part B
Peak
Phase-in
Substitution effect
How was the EITC considered both an anti-poverty program as well as an alternative to welfare?
Income Effect
people 65 or older, younger people with disabilities and people with End Stage Renal Disease(permanent kidney failure requiring dialysis or transplant)
1.) Have earned income; 2.) Be a U.S. citizen or resident alien for the entire tax year; 3.) Have a valid Social Security number
By providing incentives to work.
(also called Original Medicare) is managed by Medicare and provides Medicare benefits and coverage for: Inpatient hospital care. Inpatient stays in most skilled nursing facilities.
Process by which EITC is applied
Point a which EITC has an income effect causing workers to work fewer hours.
(medical insurance) is part of Original Medicare and covers services and supplies that are medically necessary to treat your health condition. This can include outpatient care, preventive services, ambulance services, and durable medical equipment.
By payroll taxes paid by most employees, employers, and people who are self-employed. Other sources include, Income taxes paid on Social Security benefits, interest earned on the trust fund investments.
to be a temporary refundable tax credit for lower- income workers to offset the social security payroll tax
Workers that are in this stage will work less hours because the value of the credit decreases for every extra hour worked.
the credit may make working more valuable than not working
Workers may reduce hours because the credit allows them to meet their needs with less hours of work
