Earned Income Tax Credit: Things To Know

The Earned Income Tax Credit (EITC) is a tax credit that may give you money back at tax time or lower the amount of federal taxes you owe.

You can get the credit even if you're not married or don't have kids. The main rule is that you must have a job that pays you money.

The credit might wipe away federal taxes owed. If the EITC is larger than your tax bill, you get a tax refund. You can get a refund even if you don't owe income tax.

Credit amount varies on income, marital status, and family size. The 2021 credit is $6,728. More children means more credit.

How much money will I get from the EITC?

To get the EITC, you must meet three main requirements:

Am I eligible for EITC?

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Income: The total amount of your income, which includes the income from your investments, can't go above the limits shown on the chart.

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Taxpayer Identification Number: EITC-eligible children must have working Social Security numbers. Anyone with a Social Security Number can get the EITC.

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Qualifying children: If you want to get the EITC for your children, they must be "qualifying children."

Some people need to meet these extra requirements to get the EITC: If you do not have children, you must be at least 19 years old. You can't file as married but living apart

Your children will only be eligible for the EITC if they meet all three of the following criteria:

Can my child get EITC?

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The child must be your son, daughter, grandchild, stepchild, adopted child, younger sibling, step-sibling, half-sibling, descendent, or government-placed foster child.

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Age: The child must be under 19 or under 24 if they are full-time students, or they can be any age if they are totally and permanently disabled.

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Residency: The child must spend more than half the year with you in the U.S. Not all of the time spent living together has to be in a row.

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You must file a tax return if you want to get the EITC. For a child, you need to fill out "Schedule EIC."  You can go to MyFreeTaxes.com to file your taxes.

How do I apply for an EITC?