When it comes to being eligible for the Earned Income Tax Credit offered as a refundable tax credit by the United States government, it can be a little tricky as there are several different stipulations that must be met.

Does My Income Qualify?

EITC Income

Money by Steve Wampler

In order for your income to qualify, both your earned income for the year as well as your AGI, or adjusted gross income, must meet certain criteria.  In other words, they must both be less than the amounts shown below based on qualifying information.  The first amount shown will reflect individuals, single workers while the amount in the parenthesis will reflect married filing jointly:

  • $43,279 ($48,279) with three or more qualifying children
  • $40,295 ($45,295) with two qualifying children
  • $35,463 ($40,463) with one qualifying child
  • $16,440 ($18,440) with no qualifying children

If you have investment income, it cannot exceed $3,100 per year.  This income refers to capital gains, dividends, interests and royalties.

Do I have a Qualifying Child?

This is different than determining if you have a dependent that you can claim.  So keep this in mind as just because you have a dependent does not mean he/she will qualify as a eligible child for EITC.

  • The child must be related to you by birth, marriage, foster or adoption.  Son, daughter, grandchild, niece, nephew, etc.  Adopted children acts as your own child by birth while foster children must have been placed in your home by an authorized placement agency.
  • At the end of the year, the child can be no older than 18 years old or 23, if a full-time student in college.  The only way you can claim someone regardless of their age is if they are permanently and totally disabled.
  • The child has to live with you more than half of the year and in the United States.  Six months and one day is enough to be considered as half of the year.
  • Two people cannot claim the same child for EITC.
  • A valid Social Security Number is required for the child to be eligible as well.
  • If you are married filing separately, you cannot claim a child for the EITC.

If you still need assistance, go to the IRS website and use their EITC Assistant.  It’s very helpful and will give you a series of questions to answer and will let you know if you have a qualifying child or not and if you can even claim the EITC on your tax return.