Earned Income Tax Credit (EITC) is a tax credit designed to provide financial assistance to individuals with low income. Here are the key points regarding EITC eligibility, filing status, refund amounts, and required documents:
Eligibility for EITC
1. Work Requirement: To qualify for EITC, you must have earned income from working for someone or running your own business in the previous year.
2. Age Requirement: You must be between the ages of 25 and 65 to claim the EITC.
3. Qualifying Individuals: You can receive the EITC even if you don’t have any children. Qualifying individuals can include siblings, children, stepchildren, foster children, grandchildren, nieces, and nephews.
4. Qualifying Person Criteria: The qualifying person must be 19 years old or younger, or 24 years old or younger if they are a student. Additionally, the qualifying person must live with you for more than half of the year and not provide more than half of their own support. They must also not file a joint return unless it is solely to receive a refund for income withheld or estimated tax payments.
Filing Status for EITC:
The filing statuses for EITC are Married Filing Jointly (MFJ), Single, Head of Household (HOH), or Widowed.
Refund Amounts for EITC
The refund amount varies based on filing status, the number of qualifying children, and adjusted income. Here are the income limits for each filing status:
– Single, MFJ, HOH, or Widowed
– No qualifying children: Adjusted income must be less than $15,010.
– One qualifying child: Adjusted income must be less than $39,617.
– Two qualifying children: Adjusted income must be less than $45,007.
– Three or more qualifying children: Adjusted income must be less than $48,350.
– Married Filing Jointly
– No children: Adjusted income must be less than $20,600.
– One qualifying child: Adjusted income must be less than $45,207.
– Two qualifying children: Adjusted income must be less than $50,597.
– Three or more qualifying children: Adjusted income must be less than $53,950.
The maximum credit amounts for EITC are as follows
– No children: $510
– One qualifying child: $3,400
– Two qualifying children: $5,616
– Three or more qualifying children: $6,318
Required Documents for EITC
When filing for EITC, you should gather the following documents:
– Social Security cards, verification letter, or other U.S. government documents for all individuals listed on the return.
– Birth dates of all individuals listed on the return.
– Copies of last year’s federal and state tax returns (if available).
– Income statements such as W-2, 1099, Social Security, unemployment, pensions, stocks, and interest statements.
– Expense records, including tuition, mortgage interest, real estate taxes, and business or farm-related expenses if applicable.
– Information reporting forms (e.g., 1095-A, 1095-B, or 1095-C).
– Bank routing numbers and account numbers for direct deposit of any refund.
– Dependent child care information, including the names, addresses, and Social Security numbers or tax identification numbers of paid caretakers.
These documents will help ensure accurate and complete filing for EITC.
Please note that tax laws and regulations may change over time, so it’s always a good idea to consult with a tax professional or refer to the latest IRS guidelines when preparing your taxes.