Earned Income Credit Table Amounts and Qualification
The Earned Income Tax Credit (EIC) is a credit that is for low to moderate-income taxpayers to get ahead and have more money in their pockets. It can boost refunds significantly if you can meet the eligibility guidelines to claim it.
For example, if you are employed, but your income is considered “low” by the IRS, you may be able to claim the earned income tax credit, which currently has a maximum credit amount of $6,660.
Below you will find the EIC table chart and some of the most common questions that taxpayers have about the Earned Income Credit.
Table of Contents
- 1 How Much are the EIC Table Amounts?
- 2 Who Qualifies for the EIC?
- 3 Video – Who Qualifies for the Earned Income Tax Credit?
- 4 Does My Income Have to be Low to Qualify?
- 5 Do I Qualify Even if I Didn’t Have Tax Withheld From My Paycheck, and I am not Required to File Taxes?
- 6 How Does a Child Qualify for the EIC?
- 7 What is the Earned Income Credit Worksheet?
- 8 Where Can I Find an Earned Income Credit Calculator?
- 9 Will military combat pay affect my credit?
- 10 Can the credit be added to my paycheck during the year?
- 11 Can I claim this credit if my child’s other parent claims him as a dependent?
- 12 Can I go back and claim the EIC if I qualified but didn’t do it in past years?
- 13 How do I Claim the Earned Income Credit?
- 14 How to File Taxes Online in 3 Simple Steps - TurboTax Tax Tip Video
How Much are the EIC Table Amounts?
|Dependents||Maximum Credit||Phaseout limits: Max Adjusted Gross Income|
Who Qualifies for the EIC?
To qualify for the EIC, you have to meet the income requirements for listed in the table/chart above.
If another person claims you as a qualifying child you will not be able to claim the credit. You also cannot file Form 2555 or any variation, and you are not allowed to have more than $3,650 in interest, dividends, or other investment income.
Video – Who Qualifies for the Earned Income Tax Credit?
Does My Income Have to be Low to Qualify?
If you do not have qualifying children, you must have a low income to be able to claim this tax credit. For 2020, you have to have earned less than $15,820 to qualify if you have no children. ($21,710 for joint filing) However, if you only have one qualifying child, the income limit is $41,756 for singles and $47,646 for joint filing.
Do I Qualify Even if I Didn’t Have Tax Withheld From My Paycheck, and I am not Required to File Taxes?
Yes, you can qualify for the EITC and get a refund. This is a refundable credit. However, to receive it, you have to file even if you are not required to file.
How Does a Child Qualify for the EIC?
- Age or disability – The child has to be under 19 or younger than 24 if they are a full-time student for at least 5 months. The child must be younger than you. If they are permanently and totally disabled, they can be any age.
- Relationship – The child has to be your son, daughter, stepchild, sibling, stepsibling, foster or adopted child, or a descendant of any of these.
- The child must have resided with you in the US for more than six months.
- Your child cannot be required to file a joint return.
What is the Earned Income Credit Worksheet?
The Earned Income Credit worksheet will help you to determine whether you’re eligible to claim this tax credit and how much of it you can claim. As part of your taxes, you’ll be required to fill out Schedule EIC. The worksheet will help you to do that.
This is a much better alternative to hiring an accountant to do it for you. The IRS provides full guidelines on the information they need and how you can calculate whether you’re entitled to the credit.
Keep in mind that the purpose of the Earned Income Credit is to support working and lower-middle-class families. It’s a refundable tax credit, so even if you don’t expect to owe anything to the Federal government in taxes this year, you can still get a refund from the Federal government.
After using the Earned Income Credit Worksheet, you should consider using online tax preparation to file your taxes quickly and easily.
Where Can I Find an Earned Income Credit Calculator?
The Earned Income Credit is one of the most beneficial and widely available refundable tax credits available today. You need to know that the amount you can get is highly variable and is based on your personal circumstances. This means that the Earned Income Credit can be hard to estimate.
The dependents tax credit calculator will give you an accurate view of how much you could be entitled to. Just answer some simple questions regarding your income and your living circumstances, and you’ll get a readout on how much you may be entitled to.
Take note that you may find that you may not be entitled to this tax credit at all. However, the income limits are quite high, so the chances are you will be able to claim at least part of the credit.
The maximum amount you can claim is $6,660 for the current tax year. The IRS states that the average amount credited is about a third of this, though.
Find out how much you’re entitled to with our calculator today!
Will military combat pay affect my credit?
If you have received military combat pay, you do not have to disclose this information. Usually, this income does not affect your taxable income. However, it depends on your total earned income and family size, whether or not you will receive this credit and the amount.
Sometimes it could be beneficial to include combat pay as taxable income so you could receive the EITC. Lastly, if you decide to include your combat pay, remember that it is “all or nothing.”
Can the credit be added to my paycheck during the year?
The IRS used to allow the Advance Earned Income Credit throughout the year. However, this ended in 2010.
Can I claim this credit if my child’s other parent claims him as a dependent?
Usually, if your child lived with you for the majority of the year, you would be able to claim this credit without having to claim the dependency exemption.
It is important to remember that the number of children that are claimed as dependents are not always the same number that qualifies you for this valuable credit. If the time evens out amongst parents, the parent with the highest AGI takes the credit. Only one person can claim the child, and noncustodial parents are not allowed to claim children for the EITC.
Can I go back and claim the EIC if I qualified but didn’t do it in past years?
You can file an amended return to receive the EITC for past years that you qualified but didn’t claim.
If you did not get the credit because you didn’t file or you were not sure if you could claim a child that lived with you, you have to file a separate return for all of the years you qualified. However, you cannot go back indefinitely. Usually, you are only able to file amended returns going three years back.
How do I Claim the Earned Income Credit?
Keep in mind, if you file online, they will ask you the correct questions and help you claim the tax credits and deductions you qualify for and guarantee you will receive the largest refund ever.
How to File Taxes Online in 3 Simple Steps - TurboTax Tax Tip VideoRemember, with TurboTax Online Tax Filing we’ll ask you simple questions and fill out the right forms for you. We’ll find every tax deduction and credit you qualify for to get you the biggest tax refund, guaranteed!
Frank Ellis is a Traverse City Tax Preparation Planner and published author. He has written tax and finance related articles for twelve years and has published over 1000 articles on leading financial websites.