EARNED INCOME TAX CREDIT
See also:
IRS Publication EITC, Earned Income Tax Credit Questions and Answers
IRS Publication 596 Disallowance of the EIC
IRS Publication EITC, Earned Income Tax Credit Questions and Answers
IRS Publication 596 Disallowance of the EIC
If You Work, The Earned Income Tax Credit Can Work For You!
Since 1975, the Earned Income Tax Credit has helped workers with low and moderate incomes get a tax break each year. Four out of five eligible workers claim EITC, but the IRS wants everyone who is eligible to claim this credit. Here are some things you should know about this valuable credit:
• Review your eligibility. If you worked and earned under $52,427, you may qualify for EITC. If your financial or family situation has changed, you should review the EITC eligibility rules. You might qualify for EITC this year even if you didn’t in the past. If you qualify for EITC you must file a federal income tax return and claim the credit to get it. This is true even if you are not otherwise required to file a tax return. Don’t guess about your EITC eligibility. Use the EITC Assistant tool on IRS.gov. The tool helps you find out if you qualify and estimates the amount of your EITC.
• Know the rules. You need to understand the rules before you claim the EITC, to be sure you qualify. It’s important that you get this right. Here are some factors you should consider:
o Your filing status can’t be Married Filing Separately.
o You must have a Social Security number that is valid for employment for yourself, your spouse if married, and any qualifying child listed on your tax return.
o You must have earned income. Earned income includes earnings from working for someone else or working for yourself.
o You may be married or single, with or without children to qualify. If you don’t have children, you must also meet age, residency and dependency rules. If you have a child who lived with you for more than six months of 2014, the child must meet age, residency, relationship and the joint return rules to qualify.
o If you are a member of the U.S. Armed Forces serving in a combat zone, special rules apply.
• Lower your tax or get a refund. The EITC reduces your federal tax and could result in a refund. If you qualify, the credit could be worth up to $6,143. The average credit was $2,407 last year.
For more information, see IRS Publication 596, Earned Income Credit. It’s available in English and Spanish on IRS.gov.
• Review your eligibility. If you worked and earned under $52,427, you may qualify for EITC. If your financial or family situation has changed, you should review the EITC eligibility rules. You might qualify for EITC this year even if you didn’t in the past. If you qualify for EITC you must file a federal income tax return and claim the credit to get it. This is true even if you are not otherwise required to file a tax return. Don’t guess about your EITC eligibility. Use the EITC Assistant tool on IRS.gov. The tool helps you find out if you qualify and estimates the amount of your EITC.
• Know the rules. You need to understand the rules before you claim the EITC, to be sure you qualify. It’s important that you get this right. Here are some factors you should consider:
o Your filing status can’t be Married Filing Separately.
o You must have a Social Security number that is valid for employment for yourself, your spouse if married, and any qualifying child listed on your tax return.
o You must have earned income. Earned income includes earnings from working for someone else or working for yourself.
o You may be married or single, with or without children to qualify. If you don’t have children, you must also meet age, residency and dependency rules. If you have a child who lived with you for more than six months of 2014, the child must meet age, residency, relationship and the joint return rules to qualify.
o If you are a member of the U.S. Armed Forces serving in a combat zone, special rules apply.
• Lower your tax or get a refund. The EITC reduces your federal tax and could result in a refund. If you qualify, the credit could be worth up to $6,143. The average credit was $2,407 last year.
For more information, see IRS Publication 596, Earned Income Credit. It’s available in English and Spanish on IRS.gov.
Earned Income Credit
You may qualify for the Earned Income Tax Credit, or EITC, if you worked last year, but did not earn a lot of money.
EITC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld.
To qualify for the credit, you must:
EITC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld.
To qualify for the credit, you must:
- Have a valid Social Security Number (if you are filing a joint return, your spouse also must have a valid Social Security Number)
- Have earned income from employment or from self-employment
- Have a filing status other than married, filing separately
- 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
- Not be a qualifying child of another person (if you are filing a joint return, your spouse also can not be a qualifying person)
- Not have investment income over a certain amount
- Not file Form 2555 or 2555-EZ (related to foreign earned income), and
- Have a qualifying child OR:
- 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