U.S. Federal Earned Income Tax Credit (EITC) Q&A
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What is the Earned Income Tax Credit (EITC)? |
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The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund.
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Do I qualify for EITC? |
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To qualify for EITC, you must have earned income at least $1 from working for someone or from running or owning a business or farm in the tax year and meet the income limit. You, your spouse and any qualifying child you list on your tax return must each have a Social Security number that is valid for employment and that was issued on or before the due date of your return (including extensions).Married taxpayers must file jointly to qualify for this benefit. If you, or your spouse, are a non-resident alien for any part of the year, you cannot claim the EITC unless your filing status is married filing jointly.
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What are the rules for income earned? |
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Those who qualify for EITC and claim the credits could pay less tax or even get a tax refund. The qualified amount is based on the earned income in tax year, filing status and number of qualifying children or dependents. Both your earned income and adjusted gross income (AGI) must be no more than:
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How to claim the EITC? |
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You must file a Federal tax return in order to claim EITC. Even if you do not owe any tax or are not required to file taxes, you must file your tax return and claim EITC in order to ask for an EITC tax refund. You can get credit going back 3 years. It is not too late to file your tax returns for 2016, 2017, and 2018 and claim the earned income tax credit (EITC) if you were eligible. But you must file to claim it!
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When will I get the refund? |
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The IRS expects the first EITC related refunds to be available in taxpayer bank accounts or on debit cards by the first week of March, if they chose direct deposit and there are no other issues with their tax return. |