EARNED INCOME CREDIT
The earned income credit (EIC) is a tax credit for certain people who work and have less than $39,783 of earned income. A tax credit usually means more money in your pocket. It reduces the amount of tax you owe. The EIC may also give you a refund.
How do you get the earned income credit? To claim the EIC, you must:-
Qualify by meeting certain rules,(see below Table for rules) and
-
File a tax return, even if you:
-
Do not owe any tax,
-
Did not earn enough money to file a return, or
- Did not have income taxes withheld from your pay.
-
|
EARNED INCOME CREDIT RULES:
|
||||
| First, you must meet all the rules in this column. | Second, you must meet all the rules in one of these columns, whichever applies. | Third, you must meet the rule in this column. | ||
|
Part A.
Rules for Everyone |
Part B.
Rules If You Have a Qualifying Child |
Part C.
Rules If You Do Not Have a Qualifying Child |
Part D.
Figuring and Claiming the EIC |
|
|
1. Your adjusted gross income (AGI) must be less than: 2. You must have a valid social security number. 3. Your filing status cannot be “Married filing separately.” 4. You must be a U.S. citizen or resident alien all year. 5. You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income). 6. Your investment income must be $2,900 or less. 7. You must have earned income. |
8. Your child must meet the relationship, age, and residency tests. 9. Your qualifying child cannot be used by more than one person to claim the EIC. 10. You cannot be a qualifying child of another person. |
11. You must be at least age 25 but under age 65. 12. You cannot be the dependent of another person. 13. You cannot be a qualifying child of another person. 14. You must have lived in the United States more than half of the year. |
||
