The earned income tax credit benefits working individuals and families with low to moderate incomes. EITC can lower a taxpayer’s taxes, and even result in a refund. The IRS has an easy questionnaire on its website where you can find out if you qualify before you file.
To take advantage of this credit, taxpayers must file a tax return and claim the credit. They should do so even if they don’t owe tax and aren’t required to file. EITC can be worth up to $6,557 for tax year 2019.
Taxpayers should first find out if they qualify for the credit. Here are some things for taxpayers to consider:
•Major life events may cause taxpayers to move in and out of eligibility for
the credit from year to year. Because of this, it’s a good idea for people to
find out if they qualify.
•Eligible taxpayers must have earned income from working for an employer or from running or owning a business or farm. They must also meet basic rules.
•Taxpayers without children may also qualify for EITC.
•Taxpayers can’t claim EITC if their filing status is married filing separately.
•Taxpayers must have valid Social Security numbers for themselves, their spouse, and any qualifying child listed for the credit on their tax return.
Before claiming the credit, taxpayers should also learn the EITC rules:
•Taxpayers may be married or unmarried. If married, they must file a joint return.
•Those who claim the credit without a qualifying child must meet rules for age, residency and dependency.
•For a child to qualify, they must live with the taxpayer for more than six months of the year.
•In addition, the child must meet rules for age, relationship, support, citizenship and joint return.
•Special rules apply for members of the U.S. military serving in a combat zone.