The Earned Income Credit, also known as the eic, is a tax credit for taxpayers who qualify for the eic who work and have a low income. The earned income tax credit reduces the amount of tax you owe, which may result in a tax refund which can add up to thousands of dollars.
The following are among the requirements that must be met in order to qualify
and claim the earned income credit:
- Possessing a valid Social Security Number
- Having earned income via employment or self-employment
- Choosing a filing status other than Married Filling Separately
- Being a U.S. citizen or resident alien all year
- Not being a qualifying child of another person
- Meeting the income limits
If you do not have a qualifying child, there are other requirements you must meet. For a child to qualify for the earned income credit, the following requirements must be met:
- Relationship – The child must be your son, daughter, eligible foster child, adopted child, brother, sister, half sister, half brother descendant.
- Age – Your child must be under 19 at the end of the year and younger than you or your spouse if you file a joint return, be a full time student under age 24, or be permanently and totally disable at anytime during the year, regardless of age.
- Residency – Your child must live with you more than half the year.
Another determining factor is your income. Two ways to get earned income is to work for someone who pays you, or you work in a business you own.
Once you have determined that you qualify, you can use TurboTax online tax filing to calculate
and claim the earned income credit. The tax software will search for other credits and tax deductions that you may not even know you qualify to claim.