Earned Income Credit Table Amounts and Qualification
The Earned Income Tax Credit (EITC) 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 are able to meet the criteria’s required to claim it.
For example, if you are employed, but your income is considered “low” by the IRS you may be able to take advantage of this credit, which currently has a maximum credit amount of $6,242.
To determine your credit amount all you have to do is enter your information into the tax software and it will automatically calculate the amount you will receive.
Below you will find some of the most common questions that taxpayers have about the Earned Income Credit.
Table of Contents
- 1 Do I qualify even if I did not have tax withheld from my pay and I am not required to file taxes?
- 2 Does my income have to be very low to qualify?
- 3 How much are the credit table amounts?
- 4 Who qualifies for the EITC?
- 5 Video – Who qualifies for the earned income tax credit?
- 6 Will military combat pay affect my credit?
- 7 Can the credit be added to my paycheck during the year?
- 8 Can I claim this credit if my child’s other parent claims him as a dependent?
- 9 Determining if your child qualifies for the EITC
- 10 Can I go back and claim the EITC if I qualified but didn’t do it in past years?
- 11 Claim your credit the easy way by filing online
Do I qualify even if I did not have tax withheld from my pay 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, in order to receive it you have to file even if you are not required to file.
Does my income have to be very 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 2015, you have to have earned less than $14,820 to qualify ($20,330 for couples) if you have no children. However, if you only have one qualifying child the income limit is $39,131.
How much are the credit table amounts?
|Dependents||Maximum Credit||Adjusted Gross Income|
Who qualifies for the EITC?
In order to qualify for the EITC you have to meet the income criteria’s for the current year. However, you, your spouse, and children can qualify as long as you all have social security numbers and you should be working for yourself or as an employee. You aren’t able to claim this credit if you use the status “married filing jointly” and you must be a U.S. citizen or married to one.
If you can be claimed by another person as a qualifying child or are not between the ages of 25 and 65 you will not be able to claim. You also cannot have to file Form 2555 or any variation and you are not allowed to have more than $3,400 in interest, dividends, or other investment income.
Video – Who qualifies for the earned income tax credit?
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 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 qualify you for this valuable credit. In the event that 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.
Determining if your child qualifies for the EITC
- 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 descendent 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.
Can I go back and claim the EITC 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 for three years back.
Claim your credit the easy way by filing online
Keep in mind, if you file online with H&R Block or TurboTax they will ask you the correct questions to let you know which deductions you qualify for and guarantee you will receive the largest refund ever.
Their online filing services have the ability to import your W2 information into your tax return so you can avoid worrying about your forms being delivered via snail mail. You can also use their free tax refund estimator to see how much of a refund you can expect.