How to claim the Earned Income Tax Credit (EITC)?

Based on the eligibility, low- or moderate-income individuals may claim a maximum of $7,430 on their tax return, or up to $600. The total number of children a taxpayer has and their yearly income determines how much tax credit they receive.

A tax benefit for low- and moderate-income workers is the earned income tax credit (EITC), frequently abbreviated as “earned income credit.” Refundable tax credits are available for the earned income credit.

Those eligible for the credit can use this to reduce the amount of taxes they owe by the equivalent credit. If you file your annual tax return using Form 1040 or Form 1040-SR, you are eligible for the earned income credit.

Along with filing Schedule EIC, which requests details about their child such as their Social Security number, birth year, and more, taxpayers who have qualified dependent children must also complete it.

You can get free assistance from quality tax software in filling out these papers. You might be able to benefit from free tax preparation services like the IRS Free File program if you meet the requirements for the earned income tax credit and are in a fairly simple tax position.

Step-by-step instructions to claim EITC

Step-by-step instructions to file for an earned income tax credit that can make your application process easy.

Navigate to the https://www.irs.gov/ website.
Hit the form 1040 or Form 1040-SR according to your eligibility.
A form appears on the screen.
Enter the required information such as your name, city, address, zip code, state, etc.
Choose your filing status from the given options.
Fill in the Standard Deduction options and enter your age.
Attach the required documents if needed.
Enter the amount you want to be refunded to you and choose the payment method.
Verify your details and enter the current date then put your signatures on it.
The last step is to submit your form

EITC Amount

The earned income tax credit maximums for the 2023 tax year, as well as the maximum amount of money you can make before completely losing the benefit, are listed below. Both your adjusted gross income (AGI) and your earned income must be less than the amounts shown in the table.

No. of children	Maximum EITC amount	Maximum income: If married jointly file	Maximum income: if Single or head of house file
0	$600	$24,210	$17,640
1	$3,995	$53,120	$46,560
2	$6,604	$59,478	$52,918
3 or more	$7,430	$63,398	$56,838

Who is eligible for the EITC?

You must have received at least $1 in earned income to be eligible for the EIC. There are more guidelines as well. These are the principal ones:

Investment income cap: You are not allowed to earn more than $11,000 in 2023 from the investments you make. In 2024, that amount rises to $11,600.

Income from abroad: You do not need to file Forms 2555-EZ, Foreign Earned Income Exclusion, or 2555-EZ, Foreign Earned Income.

Age: You must be at least 25 years old but not older than 65 to be eligible for the EITC if you do not have any qualifying children. The age criterion only needs to be met by one spouse if you are claiming jointly and you do not have children.
Separated couples: If a separated couple has a separation agreement, has not resided with the other person for the last six months, has a kid living with them for more than half a year, or is unable to file a joint tax return, they may be eligible for the Earned Income Tax Credit (EITC).
Special rules for others: Rules regarding earned income credit are different for those in the clergy and the armed forces, as well as for those who receive disability income or have children who are disabled.

Who is eligible for the EITC as a qualified child?

Every child you identify for your earned income credit, whether one or more, needs to meet specific requirements in order to be eligible:

The child may be your grandchild, stepchild, foster child, orphaned child, or genetic child. The child may also be one of the kids they have, your stepsibling, half-sibling, or sibling.
If the child is filing together, they must be older than you or your partner and under 19 at the close of the year; if the child is a full-time pupil, they should be under 24.
Completely or permanently Disabled Children have no age restrictions.
The child has to have spent more than six months living in the United States along with you or your husband or wife.

Eligibility for EITC without having children

If your filing status permits it and you don’t have a qualifying kid, you can be eligible for the Earned Income Tax Credit (EITC). Usually, there are three extra requirements to qualify:

You had to have spent more than half of the year living in the US.
You cannot be claimed on someone else’s tax return as a qualifying child or dependent.
You cannot be older than 64, but you have to be at least 25 years old. At minimum one partner must fulfill the age criterion if they are filing jointly.

How to claim the Earned Income Tax Credit (EITC)? – Amount and Eligibility!