Who Qualifies for the Earned Income Tax Credit?

The Earned Income Tax Credit, or EITC, is a tax credit for low- to moderate-income working taxpayers. To qualify, you must have earned income from employment or self-employment.

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What is the EITC?

The Earned Income Tax Credit, or EITC, is a tax credit available to low- and moderate-income earners. The amount of the credit is based on income, family size, and whether the taxpayer has any qualifying children.

To qualify for the EITC, taxpayers must have earned income from working for someone else or from running their own business or farm. They also must meet certain rules related to investment income and filing status. The credit can be worth up to $6,660 for taxpayers with three or more qualifying children.

Taxpayers who think they might qualify for the EITC should check the IRS website for more information. The website has an online tool that taxpayers can use to see if they are eligible for the credit and to estimate how much it might be worth.

How do I know if I qualify for the EITC?

There are three main things you need to know to find out if you qualify for the EITC:
1. How much money you made or earned last year
2. if you have any children who lived with you for more than half the year, and
3. if you (or your spouse if married filing jointly) can be claimed as a dependent on someone else’s 2016 tax return.

What do I need to do to claim the EITC?

First, make sure you are eligible. You must have earned income from employment or self-employment, meet the income guidelines, and file a tax return. You also must have a valid Social Security number, not be a qualifying child of another taxpayer, and not have investments that generate a large amount of passive income.

If you meet these requirements and think you might be eligible for the EITC, there are a few things you need to do to claim the credit:

-Gather your documents. You will need your tax return from the previous year, W-2 forms or other documentation of your earned income, and any other relevant financial records.
-Calculate your credit. Use the IRS EITC Assistant tool to help you figure out how much credit you might be eligible for.
-Claim the credit. When you file your taxes for the year, include Schedule EIC along with your 1040 or 1040A form.

How much could I get from the EITC?

The answer to this question depends on three primary things:
1) how many qualifying children you have,
2) your earned income for the year, and
3) your filing status.

Generally, the credit is worth a maximum of $6,269 for tax year 2018 if you have three or more qualifying children. The credit begins to phase out for taxpayers with incomes over about $48,340 (or $53,930 if married and filing a joint return). And if you don’t have any qualifying children, you generally won’t qualify for the credit.

To learn more about how the EITC can help you, explore the resources below. You can also use our EITC Assistant tool to find out if you qualify and estimate how much your credit could be.

What is the maximum income I can make and still get the EITC?

The Earned Income Tax Credit, or EITC, is a refundable tax credit for low- to moderate-income working individuals and couples, especially those with children.

To qualify for the EITC, you must have earned income from employment or self-employment and meet certain other requirements. For tax year 2020, the maximum earned income you can have and still get the EITC is:
-$50,954 ($56,844 married filing jointly) with three or more qualifying children
-$47,440 ($53,330 married filing jointly) with two qualifying children
-$41,756 ($47,646 married filing jointly) with one qualifying child
-$15,820 ($21,410 married filing jointly) with no qualifying children

What if I have more than one job?

The amount of the Earned Income Tax Credit (EITC) is based on your earned income and the number of qualifying children in your household. If you worked at more than one job during the year, you can only claim the EITC based on the total earnings from all jobs.

If you’re not sure which employer’s Form W-2 to use, follow these instructions:

In general, claims the EITC using Form W-2 from the job that pays the most. However, there are some situations where you may get a larger credit by using information from a different employer’s Form W-2. If any of the following apply to you, use the worksheet in Publication 596 to figure out which employer’s Form W-2 gives you the larger credit.
• You were married filing a joint return, and both you and your spouse worked, but only one of you had qualifying children. Only use information from your spouse’s Form W-2 to figure your EITC.
• You didn’t have any qualifying children, but your spouse did have qualifying children and filed a joint return with you. Only use information from your spouse’s Form W-2 to figure your EITC.
• You had income from self-employment that was less than your wages from a job or jobs.

I am married. How does that affect my EITC?

The amount of your credit may be less if you are married and file a joint return. You may be able to get the credit if your spouse does not have any income or if he or she is a nonresident alien residing in the United States with you for part of the year and meets other conditions.

I have children. How does that affect my EITC?

To qualify for the EITC with children, you must have a valid Social Security number for each child claimed. The child must live with you in the United States for more than half of the tax year, be younger than you (or your spouse if married filing jointly) and either younger than 19 years old or a full-time student younger than 24 years old at the end of the tax year. A “qualifying child” can also be any age if he or she is permanently and totally disabled. An adopted child is always treated as your own child. If the child was placed for adoption with you by an authorized placement agency, the child is treated as your own child even if you have not yet obtained a formal decree of adoption.
You can’t claim a married child who files a joint return unless that return is filed only to claim a refund of taxes and neither spouse itemizes deductions on their separate returns.

I am a student. How does that affect my EITC?

It depends on whether you are considered a full-time student for any 5 months out of the year. If you are attending school full time for at least 5 months out of the year, then you cannot claim the EITC.

However, if you are not attending school full time for at least 5 months out of the year, then you may still be eligible to claim the EITC. In order to qualify, you must meet all of the other eligibility requirements, including having earned income from work and having filed a tax return.

I am disabled. How does that affect my EITC?

The EITC is a refundable tax credit, which means that if you qualify and you have at least $1 of tax liability, you may receive a refund for any remaining amount of the credit. To qualify for the EITC with a disability, you must meet all the other requirements for the EITC. In addition, you must have earned income from working and meet one of the following:
-You are age 65 or older.
-You are retired on permanent and total disability and received taxable disability payments during the year from Social Security or certain Railroad Retirement benefits. However, if you file using head of household or married filing separately filing status, see Special rules for certain divorced or separated taxpayers , later.
-You are younger than age 65 but cannot care for yourself or perform one or more basic daily living activities because of a physical, mental, or emotional condition. A qualified medical professional must have determined that your condition has lasted or can be expected to last at least 12 months (or will result in death).

I care for a disabled person. How does that affect my EITC?

You may be eligible for the EITC if you have a qualifying child and meet certain other requirements. If you have a qualifying child, include him or her in your household even if he or she is temporarily absent, such as away at school. You must provide more than half of the child’s support during the year.

A qualifying child for EITC purposes must meet all the following requirements.
-The child must be related to you in one of the following ways: son, daughter, stepchild, foster child, brother, sister, stepbrother, stepsister, or a descendant of any of them (for example, your grandchild). The child can be your foster child only if he or she has been placed with you by an authorized placement agency or by court order.
-The child must have lived with you in the United States for more than half of the tax year.
-The child must not have provided more than half of his or her own support for the tax year.
-The child must be younger than you (or your spouse if filing a joint return) at the end of the tax year. If married filing jointly, generally only one spouse can claim a particular qualifying child. However taxpayers taking care of a disabled spouse may still qualify if certain conditions are met . An adopted child is always treated as your own child. An adopted foreignborn child meets this condition only after he or she has been adopted and meets all other requirements.
-The qualifying child cannot file a joint return for that tax year (or married filing separately).

I am in the military. How does that affect my EITC?

If you are in the military, you may be able to claim the EITC if you meet all the other eligibility requirements.

As a member of the military, you may be able to claim the EITC even if you do not have a qualifying child. You must have earned income from working for someone who pays you, or from running your own business or farm. If you are married, you must file a joint return with your spouse.

I am not a U.S. citizen. How does that affect my EITC?

The IRS uses the term “resident alien” to refer to a non-U.S. citizen who is residing in the United States and has a “green card” or meets other criteria. If you are a resident alien for tax purposes, you are treated the same as a U.S. citizen for purposes of the EITC. You must have a valid Social Security Number (SSN) to claim the credit.

I owe back taxes. Can I still get the EITC?

Yes, you may still be able to get the EITC even if you owe back taxes. However, the IRS will reduce your EITC by the amount of taxes you owe. For example, if you owe $500 in taxes, your EITC will be reduced by $500.

I am not required to file a tax return. Can I still get the EITC?

If you are not required to file a tax return, you can still get the EITC by filing a tax return.

I received advance EITC payments. How does that affect my refund?

If you received advance EITC payments, you will need to file a tax return to get the rest of the EITC to which you are entitled. The amount of the refund you receive will be reduced by the amount of advance payments you received.