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The Earned Income Tax Credit, EITC or EIC, is a benefit for working people with low to moderate income. To qualify, you must meet certain requirements and file a tax return, even if you do not owe any tax or are not required to file. EITC reduces the amount of tax you owe and may give you a refund.

When Can I Expect My Refund?

If you claim the earned income tax credit (EITC) or the additional child tax credit (ACTC) on your tax return, by law the IRS, can’t issue your refund before mid-February. Find out more on when to expect your refund.

After you file your return, the best way to track your refund is Where’s My Refund? or the IRS2Go mobile app.

Who Qualifies

Do I Qualify for EITC?

To qualify for EITC you must have earned income from working for someone or from running or owning a business or farm and meet basic rules. And, you must either meet additional rules for workers without a qualifying child or have a child that meets all the qualifying child rules for you.

Income Limits and Table

See below chart. 

Claiming EITC

How Do I Claim EITC? Fornaris Accounting will assist you in claiming the credit as well as educating you regarding the credit.

You need to file a tax return to claim EITC.

  • the documents you need
  • the common errors to watch for
  • the consequences of filing an EITC return with an error
  • how to get help preparing your return
  • what you need to do if your EITC was denied in a previous year
  • how to claim the credit for earlier tax years

Received a Notice

I Received a Letter from IRS about EITC, What Should I Do?

Fornaris Accounting can assist you with these types of dilemmas

IRS sent letters about EITC :
  • informing you that an Audit is in process
  • ask you to send information to verify your EITC claim
  • provide important information about your claim
  • LETTER OR AUDIT FOR THE EARN INCOME TAX CREDIT CONTACT FORNARIS ACCOUNTING WE WILL REPRESENT YOU IN FRONT OF THE IRS. 

 

Earned Income and AGI Limits

The tax year 2019 Earned income and adjusted gross income (AGI) must each be less than:

If filing… Qualifying Children Claimed
Zero One Two Three or more
Single, Head of Household or Widowed $15,570 $41,094 $46,703 $50,162
Married Filing Jointly $21,370 $46,884 $52,493 $55,952

Investment Income Limit

Investment income must be $3,600 or less for the year.

Maximum Credit Amounts

The maximum amount of credit for Tax Year 2019 is:

  • $6,557 with three or more qualifying children
  • $5,828 with two qualifying children
  • $3,526 with one qualifying child
  • $529 with no qualifying children
For more information on whether a child qualifies you for EITC, see:

One out of five eligible workers fails to claim the EITC.

Who qualifies for the EITC?

Besides staying below the income thresholds noted above, there are other rules.

  • You must have at least $1 of earned income (pensions and unemployment don’t count).
  • Your 2018 investment income must be $3,500 or less.
  • You can’t claim EITC if you’re married filing separately.
  • You must not file Form 2555, Foreign Earned Income; or Form 2555-EZ, Foreign Earned Income Exclusion.

There are special rules for members of the military and the clergy, as well as for people who have disability income or who have children with disabilities.

Kids and the EITC

If you claim one or more children as part of your earned income credit, each must pass certain tests to qualify:

  • The child can be your son, daughter, adopted child, stepchild, foster child or grandchild. The child also can be your brother, sister, half-brother or half-sister, stepbrother or stepsister or any of their children (your niece or nephew).
  • The child must be under 19 at the end of the year and younger than you or your spouse if you’re filing jointly, OR the child must be under 24 if he or she was a full-time student. There’s no age limit for kids who are permanently and totally disabled.
  • The child must have lived with you or your spouse in the United States for more than half the year.

For each child you’re claiming, you’ll also need:

  • A Social Security number (be sure to use the child’s name and Social Security number exactly as they appear on the Social Security card)
  • His or her birthdate

If you don’t have kids

You may be able to get the EITC if you don’t have a qualifying child but meet the income requirements for your filing status. To qualify, you must meet three more conditions:

  1. You must have resided in the United States for more than half the year.
  2. No one can claim you as a dependent or qualifying child on his or her tax return.
  3. You must be at least 25 but under 65 at the end of the year.

Contact Fornaris & Ledesma Accounting with questions regarding this Credit:

 

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