Related imageWhat is the Earned Income Tax Credit (EIC)?  EIC is a refundable credit for workers earning low or moderate incomes to supplement the income earned through working.  If you qualify for EIC it gives you the opportunity to reduce your taxes and increase your tax refund.

Both your earned income and your adjusted gross income have to be below certain levels that are based on your filing status and claimed number of children.  Keep in mind your earned income includes wages, salary and tips you received from your employer.  Your Adjusted Gross Income is what you earned minus certain deductions.

Below is the maximum EIC available for 2017 tax year and the maximum you can earn before losing the benefit.

To Qualify For Earned Income Tax Credit

  • Have earned income or taxable income earned as an employee that includes wages, salaries, commission and tips
  • Have been an American citizen or resident alien for the entire year
  • You, your spouse and any qualifying children on your return must have a valid Social Security number
  • Only one person can claim the same qualifying child
  • File your tax return as Single, Married Filing Jointly, Head of Household or Qualifying Widower filing status
  • Do not have investment income exceeding $3,450 and not filing for the tax year Form 2555 or 2555-EZ

What Is The Qualifying Child Criteria?

As stated before, a qualifying child cannot be used by more than one person to claim EIC and that child must meet the relationship, age and residency tests.  You can still qualify for EIC if you or your spouse if filing jointly:

  • Must be at least 25 years old, but under the age of 65
  • Do not qualify as a dependent on another person’s income tax return
  • You must have lived in the United States for more than half the tax year

Do not forget that April 17th is your last day to file your tax return.  Come by any of our offices to allow us in assisting you on reporting your income tax return.