EITC – Earned Income Tax Credit – Former IRS Agents Tax Preparation
What is EITC, Earned Income Tax Credit?
EITC, Earned Income Tax Credit, is a benefit for working people who have low to moderate income.
A tax credit means more money in your pocket. It reduces the amount of tax you owe and may also give you a refund.
EITC is also called EIC or Earned Income Credit.
Who can claim the credit and if I qualify, how do I get it?
- To claim EITC on your tax return, you must meet all the following rules:
- You, your spouse (if you file a joint return), and all others listed on Schedule EIC, must have a Social Security number that is valid for employment
- You must have earned income from working for someone else or running or operating a farm or business
- Your filing status cannot be married filing separately
- You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return
- You cannot be a qualifying child of another person
- You cannot file Form 2555 or Form 2555 EZ (related to foreign earned income)
- You must meet the earned income, AGI and investment income limits (income limits change each year), see EITC Income Limits for the tax year amounts
You also must be:
- Have a qualifying child (see who is a qualifying child below)
- If you do not have a qualifying child, you must:
- be age 25 but under 65 at the end of the year,
- live in the United States for more than half the year, and
- not qualify as a dependent of another person.Although an estimated four out of five eligible workers and families get this key work incentive, one in five miss out on EITC.
That’s because either they don’t claim it when filing or they don’t file a tax return at all because their income is below the filing threshold.
One-third of the population eligible for EITC shifts each year as their personal circumstances, such as work status or family situation, change and can affect eligibility.
EITC – Earned Income Tax Credit – Former IRS Agents Tax Preparation – Affordable
