The earned income tax credit (EITC) is a refundable tax credit for workers with low and moderate incomes with qualifying children. You are still able to claim the credit whether you’re single, married, or have kids. The primary requirement is that you must earn money from a job.
Am I Eligible For Earned Income Tax Credit?
You must work and generate income. You aren’t necessarily required to work all year round. Your earnings including investment income and cannot exceed the amounts shown below in the chart for the year 2021. Wages, salaries, tips, net earnings from self-employment income, military pay, employed-based disability, or union strike benefits are all examples of earned income.
Basic Qualifying Rules For EITC
To qualify for the EITC, you must:
- Have worked and earned income under $57,414
- Have investment income below $10,000 in the tax year 2021
- Have a valid Social Security number by the due date of your 2021 return (including extensions)
- Be a U.S. citizen or a resident alien all year
Earned Income Does Not Include:
- Pay you got for work when you were an inmate in a penal institution
- Interest and dividends
- Pensions or annuities
- Social Security
- Unemployment benefits
- Child support
Children Who Are Eligible For The EITC Must Meet Three Requirements:
- Relationship: The child must be your biological child—a son, a daughter, grandchild, stepchild, adopted child, younger sibling, step-sibling, half-sibling, or their descendent—or a foster child.
- Age: The child must be under 19, under 24 if a full-time student or any age if totally and permanently disabled.
- Residency: More than half the year must be spent with the child in the United States.
Maximum Credit Amounts
The maximum amount of tax credit you can claim:
- No qualifying children: $1,502
- 1 qualifying child: $3,618
- 2 qualifying children: $5,980
- 3 or more qualifying children: $6,728
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