The IRS offers different forms of financial relief to help families, and the Earned Income Tax Credit (EITC) is one of the most widely used. Low-to-middle-income workers may be able to claim a substantial tax refund from the EITCalthough there are certain eligibility requirements.
In some cases, you may be able to file for an EITC if you don’t even report children on your tax return, but you will need to meet some additional eligibility requirements. You can file under one of the following statuses:
– Married filing jointly
– Head of household
– Eligible widow or widower
– Separate married file
What are the eligibility conditions for the earned income tax credit?
The EITC is designed to provide relief to low-income families and households who may be financially stretched, to ensure they get a little help with their year-end tax bill. The program eligibility rules state that applicants must:
– Have worked and earned at least $1 in 2021
– Have income below the income threshold of their family situation
– Have investment income of less than $10,000 for the 2021 tax year
– Have a valid social security number on your 2021 return due date (including extensions)
– Be a U.S. citizen or resident alien for the full year
– Not filing Form 2555 (related to foreign earned income)
Qualifying income thresholds vary based on two factors; the number of eligible children living in the household and the applicant’s filing status. Before depositing, you should check the exact parameters of the income limit for EITC.
Generally, the higher the number of children claimed, the higher the income threshold. Joint filers will also obviously have a higher threshold than individuals.
You can still get the EITC if you don’t have children but you must meet a different set of conditions in addition to the standard eligibility criteria. Those are:
– You must have lived in the United States for at least half of the year
– You cannot be claimed as a dependent or eligible child on someone else’s tax return
– You must be at least 24 years old if you have been a student for at least five months of the year, 18 if you were in host family at any time after turning 14 or if you were without sheltered in a tax year, and at least 19 years old otherwise