Registered Tax Return Preparer RTRP Practice Exam

The correct choice is that net worth is not a test for qualifying a child for the Earned Income Credit (EIC). The EIC has specific criteria that must be met to claim the credit, which primarily revolve around the relationship, age, residency, and joint return status of the qualifying child.

For qualifying a child for the EIC, the age test ensures that the child is under a certain age at the end of the tax year, which helps determine eligibility based on how dependent the child is. The residency test requires that the child live with the taxpayer for more than half the year, an indication of a stable living situation that supports claiming the credit. The joint return test stipulates that the child cannot file a joint return with a spouse to be considered a qualifying child, as this indicates a different tax situation that generally precludes the parent from qualifying for the EIC based on that child.

Given that net worth is not one of the established criteria for the EIC, it correctly stands out as the option that does not belong in the list of qualifying tests.