Home   Knowledge  US  US Taxation  U.S. Federal Earned Income Tax Credit (EITC) Introduction 

KNOWLEDGE

SHARE

U.S. Federal Earned Income Tax Credit (EITC) Introduction

【Font:L M S

U.S. Federal Earned Income Tax Credit (EITC) Introduction

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.

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. People without qualifying children or dependents may also qualify for EITC.

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 basic requirements. 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. Both your earned income and adjusted gross income (AGI) must be no more than:

Filing Status

Qualifying Children Claimed

Zero

One

Two

Three or more

Single, Head of Household or Qualifying Widow(er)

$15,570

$41,094

$46,703

$50,162

Married Filing Jointly

$21,370

$46,884

$52,493

$55,952


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!

Disclaimer

All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage.

If you wish to obtain more information or assistance, please visit the official website of Kaizen CPA Limited at www.kaizencpa.com or contact us through the following and talk to our professionals:

Email: info@kaizencpa.com
Tel: +852 2341 1444
Mobile : +852 5616 4140, +86 152 1943 4614
WhatsApp/ Line/ WeChat: +852 5616 4140
Skype: kaizencpa

Download: U.S. Federal Earned Income Tax Credit (EITC) Introduction [PDF]

Language

繁體中文

简体中文

日本語

close