Earned Income Credit - EIC

In America, up to 25% of the taxpayers who can claim an Earned Income Credit (EIC) are not taking it. This income tax credit that can result in a refund is worth up to 4,824 dollars depending upon circumstances. Requirements to take the EIC credit are easy to qualify for, the Earned Income Credit was created for the purpose of giving lower income taxpayers, and taxpayers with children in their homes a little financial help.

Earned Income Credit - EIC: Who Qualifies?

Lower income taxpayers that do not have children living with them can take advantage of this credit, but it is not worth as much money to them as it is to those with children. People without children can receive a refundable credit of up to 438 dollars. People who have children living under their roof for any legal reason qualify for this income tax credit. The amount of the EIC credit that can be refunded is reduced for higher incomes.

People who have children living under their roofs do not need to be biological parents to the children. A child living with any relative, including a sister or brother, will have a taxpayer who can apply for the Earned Income Credit. Foster Care children and children living with non-relatives that have been court sanctioned as guardians also qualify for this potential refund money.

Children are defined as all years up to and including all of age 18, or up to and including all of age 23 for full-time students. The qualifying child or children must reside under the taxpayer’s roof for at least six months out of the year, and only one tax form may claim the Earned Income Credit for the youngsters involved. If a child lives equally at six months in two homes, the parent home or closest related relative files for the Earned Income Credit.

Start a Return