Skip To Main Content. Here are five facts about the EITC all taxpayers should know. Eligibility is limited to low-to-moderate income earners. The general eligibility rules for the EITC are: Taxpayers must file as individuals or married filing jointly. If married, you, your spouse and your qualifying children must have valid Social Security numbers.
You must also be at least 19 or older with no upper age limit. However, if you are at least a part-time student then you must be at least 24 years old. Qualifying former foster children and homeless youth must be at least 18 years old. Self-employed still counts Many filers, especially self-employed individuals, fail to take advantage of credits because they think they are ineligible.
The IRS considers all income that is earned eligible for the credit. That includes: Wages Salaries Tips Union strike benefits Long-term disability benefits received prior to minimum retirement age Net earnings from self-employment Gross income received as a statutory employee an independent contractor under common law rules Types of income that do not qualify as earned income for the credit include: Child support Retirement income Social Security benefits Unemployment benefits Alimony Pay received for work while in prison.
Eligibility fluctuates Taxpayers should pay attention to their EITC eligibility every filing year as tax laws and personal tax situations can change. Changes that could affect your eligibility for the EITC can include a new job, unemployment, loss of an annual bonus, a change in marital status, or a change in a spouse's employment situation.
Tax software can help Electronic tax programs offer an advantage over traditional pen and paper tax preparation because, as long as you enter your information accurately, they ensure that you receive the tax benefits you deserve. Environmental or conservation issues. Adaptive equipment for disabilities. Regular nursing aid and attendance to take care of daily needs.
Training or retraining to develop new job skills. Prosthetic aid, including wheelchairs and artificial limbs. Federal income tax information and return preparation. None of the above. Above average income Moderate income Low income Very low income. What do I do next? Didn't find what you were looking for? Take our Benefit Finder questionnaire to view a list of benefits you may be eligible to receive.
Start Benefit Finder. Was this page helpful? Yes No. If you qualify for the Earned Income Tax Credit, you can reduce your taxes and increase your tax refund. The EITC allows taxpayers to keep more of their hard-earned money. What would taxes be without more requirements? It is estimated that 1 out of 5 people who qualify for the EITC think they don't qualify for it , don't know about it, or used to not claim it on their tax returns. You do not have to worry about this if you eFile your tax return on eFile.
The following taxpayers are more likely to not claim the Earned Income Tax Credit if they don't use a tax program like eFile. Single taxpayers with no children or dependents are the largest group of qualifying taxpayers who think they do not qualify for the Earned Income Tax Credit on their taxes or they did not claim the EITC on their tax returns in the past.
You qualify for the EITC as long as you were at least 25 but younger than 65 on December 31 of the tax year, you earned income through work, and you met the income limits specified above. Important: For the EIC, the age limit has changed - taxpayers age 19 and older may now qualify.
Other taxpayers that frequently think they do not qualify for the Earned Income Tax Credit are: the self-employed , taxpayers in rural areas, grandparents raising their grandchildren, recently divorced couples , recently unemployed taxpayers , taxpayers with no children, and recipients of disability benefits.
Again, don't let this happen to you! When you prepare your tax return on eFile. Important : Even if you don't owe income taxes or you think you don't have to file a return, you could still get the Earned Income Tax Credit as a form of a tax refund when you prepare and e-file or file a return. For specifics, see below for income limits and other criteria for current, future, and previous year returns.
The tables below current, future, and previous indicate the maximum AGI for a taxpayer based on their filing status to claim any of the credit, the maximum credit amount, and the investment income limit. Apply market research to generate audience insights.
Measure content performance. Develop and improve products. List of Partners vendors. The earned-income credit EIC is a refundable tax credit that helps certain U. Taxpayers may be eligible for refunds if their tax credit exceeds their tax liability for the year. For tax returns, the law liberalizes some EIC rules and makes an increased EIC available to more childless taxpayers. It continues to be viewed as an anti-poverty tax benefit. The EIC is available only to taxpayers with low or moderate earnings, whether or not they have qualifying dependents.
To claim the credit for , an individual taxpayer or if the taxpayer is married, the individual or their spouse, filing jointly with no qualifying dependents must be between the ages of 25 and 64 and must live in the U.
Generally, for , qualifying dependents include dependent children who are under age 19; students under age 24; or dependents with a disability. These factors also determine the income phaseout range over which the credit diminishes to zero. No credit is allowed above the ceiling for the phaseout range. Age, relationship, and residency requirements also apply with respect to qualifying dependents. The credit reduces the amount of tax owed on a dollar-for-dollar basis. If the amount of the EIC is greater than the amount of tax owed by a taxpayer, the taxpayer may be eligible for a refund.
The EIC is one of the most important tax credits available to individual taxpayers. To qualify for the EIC in , the taxpayer must be a U. For the tax year, the limits on the income level, credit amount, and investment income for a single or married taxpayer vary, depending on the number of qualifying dependents in the household, and are shown in the table below:.
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