Do You Qualify For The Earned Income Tax Credit?

Find out how to qualify for the EITC.

You may qualify for the Earned Income Tax Credit, or EITC, if you worked last year, but did not earn a lot of money.

EITC is a refundable tax credit meaning you could qualify for a tax refund even if you did not have federal income tax withheld. The IRS defines the Earned Income Tax Credit as "a refundable federal income tax credit for low to moderate income working individuals and families."

Congress initially created the Earned Income Tax Credit to compensate for the load of social security taxes and to make available the motivation to work. When the EITC surpasses the amount of taxes to be paid, it results in a tax refund to people who claim and meet the criteria for the credit.

To qualify for the EITC, taxpayers must meet a few certain requirements and file a tax return, even if they did not earn enough money to be obligated to file a tax return.

The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing or most Temporary Assistance for Needy Families (TANF) payments.

To qualify for the credit, you must:

1. Have a valid Social Security Number (if you are filing a joint return, your spouse also must have a valid Social Security Number)

2. Have earned income from employment or from self-employment

3. Have a filing status other than married, filing separately

4. Be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return

5. Not be a qualifying child of another person (if you are filing a joint return, your spouse also can not be a qualifying person)

6. Not have investment income over a certain amount

7. Not file Form 2555 or 2555-EZ (related to foreign earned income), and

8. Have a qualifying child OR 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 meet the above qualifications, the amount of your EITC will depend on whether you have children, the number of children you have, and the total amount of your wages and income last year.

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