The Earned Income Tax Credit (EITC

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 By: Alvin Chang  Texas Tech Low Income

Taxpayer Clinic
 Address: 1802 Hartford Ave

Lubbock, TX 79409

sometimes called EIC is a tax credit to help you keep more of what you earned. the Earned Income Tax Credit. it results in a tax refund to those who claim and qualify for the credit. .EITC Definition  EITC. you must meet certain requirements and file a tax return. refundable federal income tax credit for low to moderate income working individuals and families.  When EITC exceeds the amount of taxes owed. even if you do not owe any tax or are not required to file.  To qualify.

. you must either meet the additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.Eligibility  To qualify for EITC you must have earned income from employment. Also. self-employment or another source and meet certain rules.

 There are two ways to get earned income:  You work for someone who pays you OR  You work in a business you own or run  Examples of income that is not earned income  Interest and dividends  Retirement income  Social security  Unemployment benefits .What is Earned Income?  Earned income includes all the taxable income and wages you get from working.

052 ($41.132 married filing jointly) with one qualifying child $13.740 married filing jointly) with no qualifying children  Investment income must be $3.078 married filing jointly) with three or more qualifying children $40.998 ($49.Earned Income Limits  Earned Income and adjusted gross income (AGI) must each be less than:     $43.150 or less for the year. .660 ($18.044 married filing jointly) with two qualifying children $36.964 ($46.

you and your spouse if married and filing a joint return.EITC Rules for Everyone  To qualify for Earned Income Tax Credit or EITC. filing separate filing status Must be a US citizen or resident alien all year or a nonresident alien married to a US citizen or resident alien and choose to file a joint return Cannot be the qualifying child of another person Cannot file Form 2555 (foreign earned income) Your adjusted gross income and earned income must meet certain limits . must meet all of the following rules:        Have a valid Social Security Number Have earned income Cannot use the married.

sister. daughter. half sister. or  younger than 24 and a full-time student  Any age if permanently and totally disabled3  Residency  Child must live with you (or your spouse if you file a joint return) in the United States4 for more than half of the year. step sister or a descendant of any of them such as a niece or nephew  Age. foster child2 or a descendent of any of them such as your grandchild  Brother. half brother. step brother. stepchild.  Joint Return  The child cannot file a joint return for the year. adopted child1. At the end of the filing year.Qualifying Child Rules  Your child must have a valid Social Security Number and must pass all of the following tests to be your qualifying child for EITC:  Relationship  Your son. unless the child and the child's spouse did not have a filing requirement and filed only to claim a refund. your child was:  Younger than you (or your spouse if you file a joint return) and  younger than 19. .

Either you or your spouse. you may be able to claim EITC. You (or you spouse.Rules for those Without a Qualifying Child  If you do not have a child or do not have a child that meets all four qualifying child tests and your income is low. . you must file a return to claim EITC. if you are married and file a joint return. the Earned Income Tax Credit. And. must be at least age 25 but under age 65. if filing a joint return) cannot qualify as a dependent of another person. you must meet these additional rules if you do not have a qualifying child:    You (and your spouse.  After you and your spouse. if filing a joint return. if filing a joint return) must have lived in the United States for more than half the tax year. We believe this group of workers is the largest group who do not file a return to claim the credit. meet the EITC rules for everyone.

those receiving disability benefits and those impacted by disasters.  Many persons with disabilities or persons having children with disabilities qualify for the Earned Income Tax Credit or EITC. members of the clergy. ministers. .Special Rules  Special EITC rules for members of the military.

EITC and the rest of the Tax Code  EITC recipients may also receive the child tax credit and child care tax credit.  No direct interaction between EITC and these other credits.  Personal exemptions  Standard deduction  These features are part of an overall patchwork of tax benefits for families with children .

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