Earned Income Tax Credit
The Earned Income Credit (EIC) is a tax credit for certain people who work and have earned income below a specific amount. This credit may give you a refund even if you do not owe any tax. In order to claim this credit, you must file an income tax return and qualify by meeting certain rules.
- $458 for earned income and adjusted gross income (AGI) less than $13,440 with no children ($18,440 if married filing jointly)
- $3,043 for earned income and AGI less than $35,463 and one qualifying child ($40,463 if married filing jointly)
- $5,028 for earned income and AGI less than $40,295 and two qualifying children ($45,295 if married filing jointly)
- $5,657 for earned income and AGI less than $43,279 and three or more qualifying children ($48,279 if married filing jointly)
- You must have earned income (wages or self-employment income)
- You (AND your spouse AND any qualifying child) must have a valid Social Security number
- Your filing status cannot be married filing separately
- You must be a U.S. citizen or resident alien all year
- You cannot file Form 2555 or Form 2555-EZ (which excludes foreign earned income)
- Your investment income must be $3,100 or less
- Your child must meet the relationship, age and residency tests
- Your qualifying child cannot be used by more than one person to claim the EIC
- You cannot be a qualifying child of another person
- You must be at least age 25, but under age 65
- You cannot be the dependent of another person
- You cannot be a qualifying child of another person
- You must have lived in the United States for more than half the year
A qualifying child is a child who is:
- Your son, daughter, adopted child (placed for legal adoption), stepchild or a descendant of any of them (for example, your grandchild) or
- Your brother, sister, stepbrother, stepsister or a descendant of any of them (for example, your niece or nephew), who you cared for as your own child or
- Your foster child (any child placed with you by an authorized placement agency or by judgment, decree, or other order of any court).
- And the child was, at the end of the current tax year, under age 19 or under age 24 and a student or permanently and totally disabled at any time during the year, regardless of age
- And the child lived with you in the United States for more than half of the tax year.
- Wages, salaries and tips
- Gross income received as a statutory employee
- Taxable long-term disability benefits received before minimum retirement age Net earnings from self-employment
- Nontaxable combat pay election. You can elect to include nontaxable combat pay in earned income for the purpose of figuring the earned income credit.
