The Earned Income Tax Credit
The EITC is a refundable federal income tax credit for working individuals and families. Congress originally approved the tax credit legislation in 1975 in part to offset the burden of social security taxes and to provide an incentive to work. When the EITC exceeds the amount of taxes owed, it results in a tax refund to those who claim and qualify for the credit.
To qualify, taxpayers must meet certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.
Do I Qualify?
- You must have a valid Social Security number
- You must have earned income
- Your filing status cannot be "Married Filing Separately"
- You must be a U.S. citizen or resident alien all year
- You cannot be a qualifying child of another person
- You cannot file Form 2555 or Form 2555-EZ (relating to foreign earned income)
- Your investment income must be $3,150 or less
- If you have a qualifying child:
- Your child must meet certain relationship, age, and residency tests
- Your qualifying child cannot be used by more than one person to claim the EIC
- If you do not have a qualifying child:
- You must be at least age 25 but under age 65
- You cannot be the dependent of another person
- You must have lived in the United States over half the year
Income Guidelines
If you worked in 2011:
Did you earn less than $13,660 with no qualifying children ($18,740 if married filing jointly)? You could get an EIC refund of up to $464!
Do you have one qualifying child? Did you earn less than $36,052 ($41,132 if married filing jointly)? You could get an EIC refund of up to $3,094!
Do you have two qualifying children? Did you earn less than $40,964 ($46,044 if married filing jointly)? You could get an EIC refund of up to $5,112!
Do you have three or more qualifying children? Did you earn less than $43,998 ($49,078 if married filing jointly)? You could get an EIC refund of up to $5,751!
The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.
For more information please go to www.irs.gov and search for "EIC"
What is a qualifying child?
A "qualifying child" must live with the worker for more than half the year. They must be under the age 19 (or under age 24 if they are full-time students). "Qualifying children" might include:
- Sons or daughters
- Stepchildren or grandchildren
- Adopted children
- Brothers or sisters
- Stepbrothers or stepsisters
- Foster children who are placed by an authorized placement agency
- A permanently and totally disabled child of any age