Do You Qualify For Earned Income Tax Credit?

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Do You Qualify For Earned Income Tax Credit?

EITC, or more commonly known to taxpayers as Earned Income Tax Credit (or EITC) is a tax benefit to those who fall in the moderate to low income tax bracket. Earned income refers to taxable wages you earn from working for yourself or someone else. Taxpayers qualifying for EITC can enjoy reductions in amount of taxes owed, meaning they might have a higher chance of receiving refunds when they file their taxes.

There are strict qualifying rules for the EITC:

  • You, your spouse (if you file a joint return), and all others listed on Schedule EIC, must have a Social Security number valid for employment and issued before the due date of the return, including extensions.
  • You must have earned income from working for someone else or owning or running a farm or business.
  • Your filing status cannot be married filing separately.
  • You must be a U.S. citizen or resident alien all year.
  • You can’t be a qualifying child of another person.
  • You don’t have foreign earned income.
  • You must meet the earned income, adjusted gross income, and investment income limits, which change from year to year.
  • And you must meet one of the following:
    • You must have a qualifying child
      • -or-
    • 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.

After ensuring that you meet each of the eleven demands of the Income Tax Credit rules, submit a tax return to the IRS. If you’ve filed a previous return and been denied credit, you must wait two tax years before filing for the EITC.

For help filing the correct forms, trouble shooting if you’re eligible for EIC, or have been denied the additional tax credit and refund and are unsure of the next steps to take, contact Law Offices of Christy Lee, P.C., and our team will work with you to find the right solution!

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Disclaimer: Material contained in this website is intended for informational purposes only and should not be interpreted as legal advice. The content does not constitute an attorney-client relationship between the user and Law Offices of Christy Lee, P.C., and users should not act on the content without seeking legal counsel in their own jurisdictions.

Christy Lee

Christy Lee routinely writes about changes in tax law and current tax issues.