Earned Income Credit

What is Earned Income Credit (EIC)?

Earned Income Credit (EIC) or The Earned Income Tax Credit (EITC) is a refundable tax credit that may return tax money or lower the tax you owe, only if the employee(s) are earning low or moderate income.

What are the eligibility requirements to claim Earned Income Tax Credit (EITC)?

There are three eligibility requirements to claim the EITC or EIC.

• The employee must work and earn:
  1. Salary
  2. Wages
  3. Self employed income
  4. Tips
  5. Or Military Pay
• Income limit:
  Employee(s) must earn low or moderate income. The limit is updated every year.
• Dependent on your tax return:
  If you have Social Security Numbers that permit work for you and people dependent [Children(s) and Spouse] on you claimed on your tax return.
  1. If you are married you and your spouse can not apply separately.
  2. Relationship with the child must be son\daughter, step son\daughter, grandchild, younger sibling, and adopted or foster child.
  3. The child must be under the age of 19.
  4. If the child is a full time student he\she shall be under the age of 24.
  5. If the child is permanently or totally disabled there is no age limit.