Earned Income Tax Credit (EITC)
Earned Income Tax Credit (EITC) is a benefit for working people who have low to moderate income. This tax credit means more money in your pocket! It reduces the amount of tax you owe and may also give you a refund.
To claim EITC on your tax return, you must meet all of the following rules:
- You, your spouse (if you file a joint return), and all others listed on Schedule EIC (Earned Income Credit), must have a Social Security number that is valid for employment and is issued before the due date of the return including extensions
- You must have earned income from either working for someone else or owning or running a farm or business
- Your filing status cannot be married filing separately
- You must be a U.S. citizen or resident alien all year
- You cannot be a qualifying child of another person
- You cannot file Form 2555 or Form 2555 EZ (related to foreign earned income)
- You must meet the earned income, AGI and investment income limits
- And you must meet one of the following:
- Have a qualifying child
- If you do not have a qualifying child, you must:
- Be age 25 but under 65 at the end of the year,
- Live in the United States for more than half the year, and
- Not qualify as a dependent of another person
If you qualify for EITC, you have to file a tax return with the IRS, even if you owe no tax or are not required to file. However, by doing this, you can receive a TAX REFUND! Also, the State of Kansas provides and ADDITIONAL EITC for your State taxes ON TOP of the Federal EITC!
For more information, or to see if you qualify, visit:
https://www.irs.gov/credits-deductions/individuals/earned-income-tax-credit-eitc