This quick blog will help you understand if you can claim Earned Income Credit also known as EIC for the upcoming tax year.
To claim EIC, you must meet certain rules. These rules are summarized below.
For quick reference to IRS Resource Link to their Earned Income Tax Credit page please: Click Here
Table 1. Earned Income Credit in a Nutshell
Rules for Everyone Bullets 1 & 2.
Rules If You Have a Qualifying Child Bullet 3.
Rules If You Do Not Have a Qualifying Child Bullet 4.
Figuring and Claiming the EIC
1. Your adjusted gross income (AGI) must be less than: • $51,464 ($57,414 for married filing jointly) if you have three or more qualifying children who have valid SSNs, • $47,915 ($53,865 for married filing jointly) if you have two qualifying children who have valid SSNs, • $42,158 ($48,108 for married filing jointly) if you have one qualifying child who has a valid SSN, or • $21,430 ($27,380 for married filing jointly) if you don’t have a qualifying child who has a valid SSN.
Second, you must meet all the rules in one of these columns, whichever applies.
2. You must have a valid social security number by the due date of your 2022 return (including extensions).
3. You must meet certain requirements if you are separated from your spouse and not filing a joint return. 4. You must be a U.S. citizen or resident alien all year. 5. You can’t file Form 2555 (relating to foreign earned income). 6. Your investment income must be $10,000 or less. 7. You must have earned income.
8. Your child must meet the relationship, age, residency, and joint return tests. 9. Your qualifying child can’t be used by more than one person to claim the EIC. 10. You can’t be a qualifying child of another person.11. You must meet the age requirements. 12. You can’t be the dependent of another person. 13. You can’t be a qualifying child of another person. 14. You must have lived in the United States more than half of the year.
15. Your earned income must be less than: • $51,464 ($57,414 for married filing jointly) if you have three or more qualifying children who have valid SSNs, • $47,915 ($53,865 for married filing jointly) if you have two qualifying children who have valid SSNs, • $42,158 ($48,108 for married filing jointly) if you have one qualifying child who has a valid SSN, or • $21,430 ($27,380 for married filing jointly) if you don’t have a qualifying child who has a valid SSN.