Earned Income Tax Credit (EITC)

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The Earned Income Tax Credit (EITC or EIC) is a refundable tax credit for low- and middle-income workers.

Earned Income Tax Credit also known as Earned Income Credit. This is being seen as an anti-poverty tax benefit. The EITC has been conceived as a "work bonus plan" to help offset the effects of supplementing Social Security taxes and wages of low-income workers. EITC is one of the most important tax credits for individual taxpayers.

A single mom (a head of household filer) with two qualifying children and AGI of $40,000.
A married couple (joint filers) with four children and AGI of $57,000.
A married couple (joint filers) with no children and AGI of $25,000.
There are special eligibility rules for clergy members, military members, taxpayers, and their disabled relatives.

Who Qualifies For The Earned Income Tax Credit ?

The most important eligibility requirement for EITC is some kind of earned income. The exact amount depends on your filing status and how many children you have. Earned income does not include dividend payments or interest, nor money you received from annuities, pensions, alimony, unemployment insurance (UI) or child support.

 Who Is Eligible For Earned
 Income Tax Credit ?

The only way to claim an EITC is to file a federal tax return (even if you don't owe any taxes). To claim the EITC, you must file a Form 1040 or 1040-SR federal tax return with the IRS.

How To Claim The Earned Income Tax Credit (EITC) On Your Tax Return ?