Earned Income Tax Credit

The Earned Income Tax Credit (EITC) (also known as the Earned Income Credit) is a federal income tax credit for eligible low-income working individuals and families.  When individuals are eligible for EITC and claim the credit when they file taxes, the EITC may reduce the amount of tax an individual owes, or may increase the amount of a refund from the Internal Revenue Service (IRS). To qualify, a taxpayer must meet certain rules and file a tax return, even if the taxpayer doesn't owe any tax or didn't earn enough money to require filing a return.

How it Helps You:

The EITC may help you reduce the amount of tax you pay, or qualify for a refund, or you may not have to pay tax at all. It is an incentive for low income individuals to work and earn income. The EITC has no effect on certain welfare benefits. In most cases, EITC payments will not be used to determine eligibility for Medicaid, Supplemental Security Income (SSI), food stamps, low-income housing, or most Temporary Assistance for Needy Families (TANF) payments.

How it Works:

The Rules on EITC change each year based on IRS rules and provisions. It is a good idea to consult with a professional tax preparer to see if you qualify for the credit. In general, to qualify for EITC:

• Must have a valid Social Security Number

• You must have earned income from employment or from self-employment.

• Your filing status cannot be married, filing separately.

• You must be a U.S. citizen or resident alien all year, or a nonresident alien married to a U.S. citizen or resident alien and filing a joint return.

• You cannot be a qualifying child of another person.

• If you do not have a qualifying child, you must:

• be age 25 but under 65 at the end of the year,

• live in the United States for more than half the year, and

• not qualify as a dependent of another person

• Cannot file Form 2555 or 2555-EZ (related to foreign earned income)

• EITC Thresholds and Tax Law Updates

• Special rules may apply

Do I qualify for the EITC?

There is an easy way to find out if you qualify for the Earned Income Tax Credit.  Just visit the following link to find out:  EITC Assistant.

How do I get assistance in filing may taxes?

There are resources for individuals with disabilities when working and filing income taxes. Free Tax Return Assistance is available through VITA (Volunteer Income Tax Assistance) call 1-800-829-1040 for a site near you. Information on the Earned Income Tax Credit can be found at the Internal Revenue Service. 

Always be careful to report your income accurately and file your taxes correctly.

Why Pay When You Can Get Your Taxes Done For Free?