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EITC, Earned Income Tax Credit, is a benefit for working people who have low to moderate income. A tax credit means more money in your pocket. It reduces the amount of tax you owe and may also give you a refund.
EITC is also called EIC or Earned Income Credit.
Who can claim the credit and if I qualify, how do I get it?
To claim EITC on your tax return, you must meet all the following rules:
- You, your spouse (if you file a joint return), and all others listed on Schedule EIC, must have a Social Security number that is valid for employment and is 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 (If you are a nonresident alien married to a U.S. citizen or resident alien, see Publication 519, U.S. Tax Guide for Aliens)
- You cannot be a qualifying child of another person
- You cannot file Form 2555 or Form 2555 EZ (related to foreign earned income)
- You must meet the earned income, AGI and investment income limits (income limits change each year), see EITC Income Limits for the tax year amounts
- And you must meet one of the following:
- Have a qualifying child (see who is a qualifying child below)
- If you do not have a qualifying child, 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.
If you qualify for EITC, you have to file a tax return with the IRS, even if you owe no tax or are not required to file.
A tax credit of up to $1,000 per qualifying child.If you claim the nonrefundable child tax credit but do not qualify for the full amount, you may also be able to take the refundable additional child tax credit. You must meet various criteria regarding the qualifying child.