The IRS offers a variety of credits that lower an individual's tax liability, which sometimes means more money back. One such credit is the Earned Income Tax Credit, also referred to as the Earned Income Credit. Here's a bit about who might be eligible and how to file.
- What is the Earned Income Credit?
The EIC (also known as EITC, earned income tax credit) is a benefit for certain people who work and have low to moderate wages. A tax credit means more money in your pocket. It reduces the amount of tax you owe and may also give you a refund.
- Who’s eligible for the Credit?
There are several filing criteria, but the most important is… You must have earned income from working for someone else or running or operating a farm or business. A person can also have a qualifying child.
- How do I file?
The Earned Income Tax Credit is a line item on the federal income tax return forms (1040, 1040A, 1040EZ). To determine if an individual qualifies, he or she must complete and file a federal return.
If the individual has a qualifying child he/she must file a federal income tax return and attach Schedule EIC.
as a side note… individuals earning less than $9750/year (single) are not required to file a return, however the individual might qualify for the Earned Income Tax Credit and might choose to file anyway.