Earned Income Credit
To qualify for the earned income credit, taxpayers must meet certain requirements and file a tax return.
Even if they did not earn enough money to be obligated to file a tax return, to receive the earned income tax
credit the taxpaye must file a return.
The Earned Income Tax Credit (EITC) sometimes called the Earned Income Credit (EIC),
is a refundable federal income tax credit for low-income working individuals and families.
Congress originally approved the tax credit legislation in 1975 in part to offset the burden of
social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed,
it results in a tax refund to those who claim and qualify for the credit.
Earned Income Credit (EIC)
Earned Income Credit has maximum amounts of income you can earn in order to qualify for the credit.
You maybe eligble for the credit if:
* You have more than one qualifying child and you earned less than $37,783 ($39,783 if married filing jointly)
* You have one qualifying child and you earned less than $33,241 ($35,421 if married filing jointly), or
* You do not have a qualifying child and you earned less than $12,590 ($14,590 if married filing jointly).
You must meet the following EITC requirements:
* Must have a valid Social Security Number
* You must have earned income from employment or from self-employment.
* 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.
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
* Cannot file Form 2555 or 2555-EZ (related to foreign earn income)
EITC Thresholds and Tax Law Updates Special rules may apply
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Tax Topics
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