Since 1975, the Earned Income Tax Credit has helped workers with low and
moderate incomes get a tax break each year. Four out of five eligible workers
claim EITC, but the IRS wants everyone who is eligible to claim this credit.
Here are some things you should know about this valuable credit:
• Review your eligibility. If
you worked and earned under $52,427, you may qualify for EITC. If your financial
or family situation has changed, you should review the EITC eligibility rules.
You might qualify for EITC this year even if you didn’t in the past. If you
qualify for EITC you must file a federal income tax return and claim the credit
to get it. This is true even if you are not otherwise required to file a tax
return. Don’t guess about your EITC eligibility. Use the EITC
Assistant tool on IRS.gov. The tool helps you find out if you qualify and
estimates the amount of your EITC.
• Know the rules. You need to
understand the rules before you claim the EITC, to be sure you qualify. It’s
important that you get this right. Here are some factors you should
consider:
o Your filing status can’t be Married Filing
Separately.
o You must have a Social Security number that is
valid for employment for yourself, your spouse if married, and any qualifying
child listed on your tax return.
o You must have earned income. Earned income
includes earnings from working for someone else or working for yourself.
o You may be married or single, with or without
children to qualify. If you don’t have children, you must also meet age,
residency and dependency rules. If you have a child who lived with you for more
than six months of 2014, the child must meet age, residency, relationship and
the joint return rules to qualify.
o If you are a member of the U.S. Armed Forces
serving in a combat zone, special rules apply.
• Lower your tax or get a
refund. The EITC reduces your federal tax and could result in a
refund. If you qualify, the credit could be worth up to $6,143. The average
credit was $2,407 last year.
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