Who is Eligible for the Earned Income Tax Credit?

Are you wondering if you or your family members are eligible for the Earned Income Tax Credit (EITC)? This tax credit is designed to help low- to moderate-income workers and families get a tax exemption. It's one of the largest refundable tax credits available, and many taxpayers receive more money through the credit than they pay in federal income taxes. Here's what you need to know about eligibility criteria, common deductions, and other factors that may affect your credit amount. Your credit amount may change depending on whether you have children, dependents, or are disabled. People of any age can be eligible for the EITC, which means that a parent or guardian can apply for children over 18 to receive a higher credit.

From retirement account contributions to self-employment expenses, learn more about the five most common tax deductions from the experts at H&R Block. When you apply for the EITC on your federal tax return, you may be able to get a similar credit on your state or local income tax return. Those earnings may come from salaries, tips, or other forms of payment where federal income taxes are withheld, according to the IRS. If the credit you receive is worth more than the taxes you owe, you'll receive the rest of the money through your federal income tax refund. The IRS provides detailed information on other, less common factors that may affect whether a child qualifies for the EITC. Receiving the EITC will not change the amount you receive from any other federal benefit, including unemployment insurance, Medicaid, SNAP (formerly food stamps), SSI, SSDI, TANF, WIC, Section 8, or Public Housing. Whether taxpayers qualify for the credit also depends on their adjusted gross income (AGI) in several tax years, both in the current and in the previous and next tax years.

If this is your first time filing your tax return, or even if you've already filed your tax return but would like help this year, there are places located across the country that can help you file your tax return. By law, the agency cannot disburse those funds sooner to avoid fraud and errors. The EITC is one of the most complicated tax exemptions available. However, millions of taxpayers are eligible for it. This website provides information to help the public understand the child tax credit and anticipate child tax credit payments.