Under what condition would a taxpayer be ineligible for the refundable Young Child Tax Credit (YCTC) in 2021?

The refundable Young Child Tax Credit (YCTC) is designed to provide financial relief to families with young children. For the tax year 2021, there are specific income thresholds established for eligibility.

A taxpayer is ineligible for the YCTC when their income exceeds a defined limit, which in this case is set at $35,000. This income threshold is critical because it determines who qualifies for the credit; exceeding this amount means that the taxpayer's income is too high to qualify for the benefit.

In contrast, a taxpayer with an income below $30,000 would typically be eligible for the YCTC, as they fall within the designated income bracket. Having dependents is also a key component of this credit, and those with no dependents generally would not qualify as the YCTC is aimed specifically at families with qualifying children. Furthermore, the filing status of married filing separately can impact overall eligibility for various credits, including the YCTC, but does not serve as a direct disqualification based solely on the credit itself; it depends on other factors such as income thresholds as well.

Thus, the correct answer highlights the income limitation that directly affects eligibility for the Young Child Tax Credit.