Earned Income Credit: What You Need to Know for 2018
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The Earned Income Credit , or EIC, is a tax credit for low- and moderate-income earners. To qualify for the credit, you must have earned income from wages, self-employment, or farming. The credit is based on your filing status and number of qualifying children. For 2018, the maximum credit is $6,444 for taxpayers with three or more qualifying children.
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Introduction
The Earned Income Credit (EIC) is a tax credit for low- to moderate-income working taxpayers. The credit can be worth up to $6,317 for taxpayers with three or more qualifying children. For 2018, the credit is worth up to $516 for taxpayers with one qualifying child and up to $3,444 for taxpayers with two qualifying children. To qualify for the EIC, taxpayers must have earned income from working and meet certain other requirements.
What is the Earned Income Credit?
The Earned Income Credit, or EIC, is a tax credit for working families with low to moderate incomes. To qualify for the EIC, you must have earned income from a job or self-employment and meet certain other requirements.
If you qualify for the EIC and claim it on your taxes, you may get back some or all of the federal income tax that was withheld from your paychecks during the year. You may also get additional money from the IRS.
In order to claim the EIC, you must file a tax return even if you do not owe any taxes. You should file your taxes as soon as possible so that you can get your refund (if you are entitled to one).
The amount of the EIC depends on your income and how many qualifying children you have. The maximum credit is $3,461 for someone with no qualifying children; $5,716 for someone with one qualifying child; $6,431 for two qualifying children; and $3,526 for three or more qualifying children.
To find out if you qualify for the Earned Income Credit and to calculate your credit amount, use the EITC Assistant tool on the IRS website.
Who is eligible for the Earned Income Credit?
The Earned Income Credit, or EIC, is a tax credit for eligible low- to moderate-income workers. The credit can be worth up to $6,431 for someone with three or more qualifying children. To claim the credit, you must file a tax return.
To be eligible for the EIC, you must:
-Have earned income from working for someone or from running or owning your own business or farm
-Not have investment income that exceeds a certain amount
-Meet the IRS requirements for filing status
-Have a valid Social Security number
How much is the Earned Income Credit?
The Earned Income Credit, or EIC, is a refundable tax credit for low- to moderate-income working taxpayers. For tax year 2018, the credit is worth up to $536 for taxpayers with no qualifying children, $3,526 for those with one qualifying child, and $5,828 for those with two or more qualifying children.
How to claim the Earned Income Credit
To claim the Earned Income Credit, you must file a tax return and attach Schedule EIC. You do not need to itemize deductions to claim the credit.
Conclusion
The Earned Income Credit is a tax credit for low- and moderate-income working families. The credit is refundable, which means that you can get money back even if you don’t owe any taxes.
To qualify for the Earned Income Credit, you must have earned income from working. This can include income from a job, self-employment, or farming. You also must meet certain other requirements.
If you qualify for the Earned Income Credit, you can get a credit of up to $6,431 for 2018. The amount of the credit depends on your income and how many children you have.
The Earned Income Credit is one of the most valuable tax credits available. If you think you might qualify, be sure to check it out.
