Earned Income Tax Credit (EITC)
We are dedicated to making sure that workers in our communities get their fair share of the return that is rightfully theirs. Below are some of the most common questions asked about the Earned Income Tax Credit (EITC). We hope the answers help you determine if you, or someone you know, is owed Earned Income Tax Credit money from the federal government.
Who can apply?
Who qualifies for the EITC refund?
- You (plus your spouse if you are married) and your children have Social Security numbers.
- You earn income either working for yourself or as an employee.
- You do NOT use the Married Filing Separately filing status.
- You are a U.S. citizen or resident alien all year, a nonresident alien married to a U.S. citizen or a resident alien and filing a joint return.
- Someone else cannot claim you as a qualifying child for the EITC.
- You do not have foreign earned income for which you must file Form 2555 or Form 2555 EZ.
- You do not have income derived from investments greater than $3,400 in interest, dividends or other investment income
Do I have to earn really low income to qualify for an EITC refund?
What is a “qualifying child” and how do I know if my child or children will qualify me for an EITC refund?
Relationship: A qualifying child can be your son, daughter, adopted child, step-child, foster child or a descendant of any of these, such as your grandchild. A qualifying child could also be your brother, sister, half-brother, half-sister, step-brother, step-sister or a descendant of any of these such as your niece or nephew
Age: At the end of the filing year, your qualifying child was younger than you (or your spouse if you are filing a joint return) and younger than 19; or at the end of the filing year, your qualifying child was younger than you (or your spouse if you are filing a joint return), younger than 24 and a full-time student; or at the end of the filing year, your qualifying child was any age and permanently and totally disabled.
Only one person can claim the same qualifying child. If a child qualifies for more than one person and one of the persons is a parent or parents, the non-parent can claim the child only if their Adjusted Gross Income is higher than the parent(s)
A qualifying child cannot file a joint return for the tax year unless the child and the child’s spouse did not have to file separately.
Be sure to ask your tax preparer if you have any questions about whether you have a qualifying child in your household. For more information on qualifying children, click here (https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit/qualifying-child-rules)
Are there any restrictions that would make me not eligible when applying?
- Child support
- Retirement income
- Social Security benefits
- Unemployment benefits
- Earned income during incarceration
Below are some other types of income that are not considered for the EITC refund:
- If you have foreign earned income for which you must file Form 2555 or Form 2555 EZ.
- You have investments greater than $3,400 you are not considered eligible for the EITC refund
If you have any doubts or unsure if any of these types of incomes apply to you, please check with your tax preparer.
I didn’t make enough this year to need to file taxes. Can I get an EITC refund?
I did not qualify last year. Should I apply?
I think I may qualify for EITC for last year but did not apply. What should I do?
Where can I go to get more information on the EITC?
Finally, we at NeighborWorks Umpqua would be happy to help direct you to direct services in your county. Contact Katelyn at firstname.lastname@example.org or 541-673-4909.