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Earned Income Tax Credit (EITC) |
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Personal Finance -
Taxes
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What is the Earned Income Tax Credit?
The EITC is a refundable federal income tax credit for people who work but do not earn high incomes. If you qualify, it reduces the amount of tax you owe, and it may give you a refund. You may even be eligible for an advance EITC, which allows you to receive part of the credit in each paycheck during the year.
Am I eligible for the EITC?
You are eligible for the EITC if:
- You have a valid Social Security number.
- You have earned income. This does not include alimony, child support, welfare benefits, unemployment benefits, interest, dividends, pensions, and certain workforce payments.
- You are between 25 and 65 years of age, unless you have a qualifying child.
Please note that the amount of income that you can earn to be eligible for the EITC is adjusted each year. Please contact the IRS for income information.
To claim additional benefits:
- You must have children who are living with you for at least 6 months.
What benefits can I receive under the EITC?
Benefits can range from $350 to $4,000. Rules and examples can be found in IRS Publication 596. A free copy of this application form and the IRS Publication is available on the following web site: www.irs.gov or by calling the IRS at: 1-800-829-3676, or you can call the IRS directly at 1-800-829-1040 for assistance.
Will the EITC be used to determine my eligibility for other government programs?
Any refund you receive as a result of taking the EITC will not be used to determine your eligibility for, or how much you can receive from, the following programs:
- Medicaid and supplemental security income (SSI)
- Food stamps and housing assistance
- Temporary Assistance for Needy Families (TANF)
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